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The Asia-Pacific market rose on Thursday, breaking the ranks on Wall Street after U.S. Federal Reserve Chairman Jerome Powell warned that ongoing trade tensions could challenge the central bank’s goals of controlling inflation and driving growth.
Hong KongThe Hang Seng index ended the day at 21,395.14, up 1.61%, while the mainland China CSI 300 closed its flat at 3,772.22.
Indian stocks reversed the course Early trade losses. The benchmark Nifty 50 rose 1.61%, while the broader BSE Sensex surged 1.63% at 2:15pm Standard Time in India.
Japanese benchmark Nikkei 225 It rose 1.35% to finish the day at 34,377.60, but the broader Topix index added 2,530.23 to 1.29%.
In Korea, the Kospi index closed at 2,470.41, up 0.94% Small-cap Kosdaq rose to 1.81% to 711.75 after the central bank reached 2.75%, as expected by the economists voted by Reuters.
Australia’s S&P/ASX 200 rose 0.78% at 7,819.10.
Due to uncertainty in world trade, T. Thomas Poullaouec, head of RowePrice’s Multi-Asset Solutions APAC, was looking for opportunities outside the US.
“We are seeing better opportunities outside of the US (Europe, China, Asia, etc.) to improve the increased fiscal spending and the sentiment supported by the dovish central bank,” he wrote in a note on Thursday.
Meanwhile, Pullauek is betting on “a spread sector that includes global high yields with attractive all-in yields and Asian credit bonds.”
“The foundations are still supportive, but the spreads are vulnerable to the effects of trade uncertainty,” he explained.
Pollauec says he is overweight in cash and that his assets “provide attractive yields and liquidity.”
Even as investors weighed the impact of the trade war on the country’s economic growth, US futures rose.
Within the state overnight, stocks fell sharply after Powell warned that trade tensions could affect the Fed’s inflation and employment targets. The Wall Street sale was also caused by a 6.9% drop in stake in artificial intelligence darling nvidia.
The Dow Jones industrial average lost 699.57 points (1.73%) to 39,669.39 points. The S&P 500 ended at 5,275.70, down 2.24%, leading to the information technology sector. The NASDAQ Composite pulled back 3.07% and closed at 16,307.16. The Tech Heavy Index has closed at about 19% off the closure area as it approaches the bear market territory.
– CNBC’s Pia Singh, Alex Harring and Lisa Kailan Han contributed to this report.
