Asian stocks recovered some lost ground on Tuesday after a brutal global sell-off the day before on heightened Middle East tensions, an unwinding of yen carry trades, lukewarm tech earnings, and concerns about slowing U.S. economic growth.
The Japanese yen snapped a five-day gain and gold edged down slightly while oil rebounded from seven-month lows on concerns about supply disruptions from rising tensions in the Middle East.
China’s Shanghai Composite index rose 0.23 percent to 2,867.28 while Hong Kong’s Hang Seng index slipped 0.31 percent to 16,647.34.
Japanese markets staged a sharp recovery after plunging the most in 37 years the previous day. The Nikkei average jumped 10.23 percent to 34,675.46, after having plummeted more than 12 percent on Monday.
The broader Topix index settled 9.30 percent higher at 2,434.21, led by automakers and technology stocks. Toyota Motor, Honda Motor and Tokyo Electron soared 13-17 percent.
Seoul stocks rebounded from the previous day’s worst market sell-off. The Kospi average climbed 3.30 percent to 2,522.15 after crashing a whopping 8.77 percent on Monday. SK Hynix and Hyundai Motor both rose around 5 percent.
Australian markets eked out modest gains after the Reserve Bank of Australia kept interest rates steady but warned the economy remained overheated.
The benchmark S&P/ASX 200 edged up 0.41 percent to 7,680.60 after its worst two-day sell-off since the coronavirus pandemic. The broader All Ordinaries index gained 0.39 percent to close at 7,890.10.
Consumer discretionary stocks performed well while energy stocks suffered heavy losses.
Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index ended down 0.15 percent at 12,245.76.
U.S. stocks ended with deep losses overnight as recession worries and a widespread shift in sentiment around the technology sector overshadowed data showing a rebound in the U.S. services sector activity from a four-year low in July.
The tech-heavy Nasdaq Composite plunged 3.4 percent and the S&P 500 plummeted 3 percent to hit three-month lows while the Dow slumped 2.6 percent.
Business News
Asian Shares Rebound In Cautious Trade; Nikkei Jumps Over 10%
2024-08-06 08:35:40
