· Asian Stocks Follow Wall Street Higher After Tech Gains
Asian stock markets followed Wall Street higher on Thursday following gains for major U.S. tech stocks.
Benchmarks in Shanghai, Tokyo, Hong Kong and Australia rose.
U.S. stocks have recovered most of this year’s losses, helping to push up global prices, despite rising numbers of American coronavirus infections that threaten to derail economic improvement. Investors are buying technology and other companies they expect to emerge stronger from the global downturn.
On Wednesday, Wall Street turned in its sixth gain in seven days when the benchmark S&P 500 index closed up 0.8%. Amazon, Apple and Microsoft accounted for half that rise.
Optimism is rising about a reopening U.S. economy, but virus case numbers are rising across much of the South and West. Some state governments have reversed plans to allow restaurants and other businesses to reopen.
Major companies are due to report quarterly results next week. They are expected to be dismal.
· China shares' bull run hits 8 days even as state media flags risks
China shares on Thursday extended their rally into an eighth day, fuelled by liquidity, policy support and retail investor enthusiasm, even as regulators cracked down on margin financing and as state media warned of market risks.
The Shanghai Composite index .SSEC was up 1.39% at 3,450.59, its highest close since February 2018. The index gained for eight consecutive sessions, its longest winning streak since January 2018.
The blue-chip CSI300 index .CSI300 was up 1.4% at its highest close since June 2015.
· China Stock Euphoria Lifts IPO to Record 924% First-Day Gain
A Chinese initial public offering soared tenfold on its Thursday trading debut, the latest sign of euphoria in the nation’s $9.3 trillion stock market
QuantumCTek Co., which develops information security products, closed 924% above its 36.18 yuan ($5.18) issue price.
The frenzied trading comes as stock volume and prices have been rising quickly in China
Chinese stocks’ value has risen more than $1 trillion in July.
· Japanese shares rebound but spike in COVID-19 cases caps gains
Japanese shares bounced back on Thursday buoyed by technology-related stocks following a rise in U.S. peers overnight, but gains were limited by a surge in domestic coronavirus cases.
The benchmark Nikkei share average rose 0.4% to 22,529.29, clawing back from a 0.78% drop in the previous session. On the Nikkei index, there were 63 advancers against 158 decliners.
The market extended gains after the midday break supported by the Shanghai Composite stocks rallying into eighth day.
However, investor sentiment was soon dampened by 224 fresh coronavirus cases in Tokyo on Thursday, which hit a record daily high.
The market showed little reaction to data that Japan’s machinery orders unexpectedly rose 1.7% in May after a 12.0% slump in April due to the pandemic.
Domestic technology-related stocks advanced after the Nasdaq marked its fourth record closing high in five days on Wednesday.
Tech conglomerate and Nikkei heavyweight SoftBank Group Corp jumped 4.52%, lifting information and communication to the top performing sector on the main bourse at 1.6%.
The broader Topix ended flat at 1,557.24, with all but nine of the 33 sector sub-indexes on the Tokyo exchange trading in negative territory.
· European markets open higher as economic recovery hopes take hold
European markets opened higher Thursday morning as investor focus swings to the potential economic recovery and earnings season gets underway.
The pan-European Stoxx 600 climbed 0.6% at the start of trading, with tech stocks jumping 1.8% to lead gains while utilities slid 0.3% lower.
Reference: CNBC, Reuters
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