JSE set to benefit from Asia and US rally

JOHANNESBURG - The JSE will open to a rush of green from Asian markets on Wednesday after US markets rallied for a second day in a row. The Nikkei in Japan gained 0.32 per cent, the Hang Seng in Hong Kong surged by 5.47 per cent while the Shanghai composite remained closed for China’s Golden Week holiday.

The rise from Hong Kong came in part because of pent-up deals after its markets were closed on Tuesday for a public holiday.

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The Hang Seng and the Nikkei were also buoyed by Wall Street’s rally as investors anticipate that the US Federal Reserve will slow down the pace of interest rate hikes after weaker-than-expected economic data.

The Nasdaq ended 3.34 per cent higher on Tuesday, followed by the S&P 500 with 3.06 per cent and the Dow Jones 2.80 per cent.

Boosted

Meanwhile, market sentiment was also boosted by Reuters reporting that Chinese refiners were likely to boost refined oil products exports in November and December and into the start of 2023, after receiving the biggest allocation from Beijing this year. Year to date, the Nikkei is down 7.55 per cent, the Hang Seng 22.61 per cent and the Shanghai composite 16.74 per cent.