Asian shares track global rally
NEW YORK: Shares advanced across Asia on Tuesday after Wall Street closed broadly higher on encouraging economic reports, starting off August by closing within 3 percent of the record high it set in February. Investors appear to be shrugging off surging coronavirus caseloads in dozens of countries.
Tokyo's Nikkei 225 gained 1.4 percent to 22,505.83 and the Hang Seng in Hong Kong added 0.7 percent to 24,637.24. Sydney's S&P ASX 200 jumped 1.6 percent to 6,022.50 and the Kospi in Seoul picked up 1.1 percent to 2,275.84. The Shanghai Composite index edged 0.1 percent higher to 3,372.76.
Overnight, the S&P 500 added another 0.7 percent onto its fourmonth winning streak, closing within 3 percent of the record high it set in February, at 3,294.61. Big Tech led the way higher again, and Microsoft and Apple alone accounted for most of the S&P 500 s gain.
The rally followed reports showing that manufacturing has improved across much of the world, including in China, Europe and the United States. With the total caseload rising by less than 50,000 for two straight days, investors bet that US outbreaks might be moderating, said Jeffrey Halley of Oanda.
“Hopes rose that the US might avoid a deeper recession, which was all financial markets needed to send equity markets higher, and for the US dollar to continue recovering some of its recent losses," Halley said in a commentary.
The Dow Jones Industrial Average rose 0.9 percent to 26,664.40, while gains for tech stocks, particularly Microsoft and Apple, pushed the Nasdaq composite 1.5 percent higher, to 10,902.80, another record.
Microsoft jumped 5.6 percent Monday after it confirmed that it’s in talks to buy the US arm of TikTok, a Chinese-owned video app that is very popular but has also drawn the White House’s scrutiny.
Microsoft said its chief executive officer, Satya Nadella, has discussed the issue with President Donald Trump, and the tech giant expects the talks with TikTok to end no later than Sept. 15, either with a deal or without.
Apple added 2.5 percent, piling more gains onto its 10.5 percent rise Friday following a blowout report showing that its profits during the spring easily topped Wall Street’s expectations.