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Asian markets rose in early trading Thursday after Wall Street snapped a three-day losing streak.
Japan’s Nikkei 225 JP:NIK advanced 0.8% while Hong Kong’s Hang Seng index HK:HSI inched up 0.1%. The Shanghai Composite CN:SHCOMP rose 0.3% while the smaller-cap Shenzhen Composite CN:399106 fell 0.6%. South Korea’s Kospi KR:180721 gained 0.8% while benchmark indexes in Taiwan TW:Y9999 and Singapore SG:STI were mixed. Indonesian stocks ID:JAKIDX tumbled 5%, while Australia’s S&P/ASX 200 AU:XJO rose 0.4%.
Traders also awaited word from the European Central Bank, which was expected later in the day to keep its monetary policy unchanged.
On Wednesday, U.S. stocks booked sharp gains after three straight days of losses. The Dow Jones Industrial Average US:DJIA rose 439.58 points, or 1.6%, to close at 27,940.47, while the S&P 500 US:SPX closed at 3,398.96, an increase of 67.12 points, or 2%. The Nasdaq US:COMP jumped 293.87 points, 2.7%, to finish at 11,141.56, while booking its best daily percent gain since April 29, according to Dow Jones Market Data.
“The rebound rally might suggest that investors remain confident about the economic prospects where a virus vaccine still provides a pillar of support, albeit with some dents in the armor,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a note. “But ultimately, they remain codified around the Federal Reserve Boards’ redoubtable policy support.”
