- Asian markets rallied on Tuesday
- Strong performance from tech companies lifted U.S. markets on Monday
- China, Hong Kong, South Korea, and Japan’s indexes finished on a high note
Asian shares had a tantalizing Tuesday as markets rallied throughout the day due to positive developments pertaining to the U.K.’s Brexit deal and good performance from tech stocks in the US markets, reports CNBC, March 12, 2019.
Continuing from yesterday’s encouraging performance, Asian stocks surged on Tuesday on the back of a strong showing from the U.S. markets after a five-day losing street on Wall Street. The performance was also bolstered by above-par January 2019 U.S. retail sales numbers released on March 11, 2019.
Good news also came from Europe as British Prime Minister, Theresa May found some last-minute luck in securing support from the European Union (EU) for her Brexit deal which is slated to undergo a crucial voting round on March 12.
Chinese Stock Markets Performance
The flurry of positive developments the world over had a cascading impact on Asian stocks.
The Shanghai Composite climbed more than 1 percent to close at 3,060.31. A similar upward movement was observed in the Shenzhen Composite and Hong Kong’s Hang Seng index, both jumping 1.67 and 1.44 percent, respectively.
Crude prices continued their recovery momentum this week which reflected in the rise in the price of Asian oil stocks. Investor sentiment surrounding crude oil received a boost after Khalid al-Falih, the Minister of Energy for Saudi Arabia, said that an end to OPEC-led crude supply was less than likely before June 2019.
Conversely, Chinese online food delivery firm, Meituan Dianping’s shares tumbled more than 10 percent by the afternoon trading session. This comes one day after it posted its Q4 2018 results which brought to light that its operating loss more than doubled in the quarter.
Japan, South Korea, and Australia
Japan’s Nikkei 225 surged 1.79 percent to close its Tuesday trade at 21,503.69 points. It’s worth highlighting that the exchange climbed more than 2 percent during early trade but suffered small losses to bring the figure to 1.79 percent. Japan’s Topix closed at 1,605.48 points as it gained 1.52 percent.
South Korea’s benchmark exchange, Kospi finished the day at 2,157 points, up 0.89 percent from its previous close.
However, the positive ripple effect didn’t quite make it to Oceania as Australia’s ASX 200 closed at 6,174.80 points, declining by 0.09 percent from its previous close.
ANZ Research said in a morning note:
“Markets will be looking for January’s lift to be sustained, with strength in the labour market and rising real wages expected to support consumption.”