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Asian Stocks Rebound on Tuesday 03/26 05:53
Asian stock prices rebounded Tuesday after global markets slid on worries
about U.S. and European economic growth.
BEIJING (AP) -- Asian stock prices rebounded Tuesday after global markets
slid on worries about U.S. and European economic growth.
Tokyo's Nikkei 225 index rose 2.3 percent to 21,454.02 and Hong Kong's Hang
Seng gained 0.2 percent to 28,571.71. The Shanghai Composite Index lost 1
percent to 3,012.92 and Sydney's S&P-ASX 200 was up 5 points at 6,130.60.
Seoul's Kospi advanced 0.3 percent to 2,150.62 and India's Sensex gained 0.2
percent to 37,880.63. Benchmarks in New Zealand, Taiwan and Southeast Asia also
rose.
On Monday, major markets in Europe and Asia tumbled as traders tried to make
sense of pessimistic new outlooks on global growth.
On Wall Street, the benchmark Standard & Poor's 500 ended down 0.1 percent
at 2,798.36 points. That added to losses from last week's sell-off.
Traders were rattled by a drop in long-term bond yields, which many see as a
warning sign of a possible recession.
"Worries about global growth are evident," said Shane Oliver of AMP Capital
in a report.
Despite that, "we see this year as being a decent year for share market
returns," said Oliver. He pointed to a shift by central banks toward easier
monetary policy, China's plans for economic stimulus and fading fears about the
U.S.-Chinese tariff war.
European investors are uneasy about the uncertain outlook for Britain's plan
to leave the European Union.
British lawmakers seized a measure of control over the process from Prime
Minister Theresa May on Monday. That set up votes that could alter the course
of Britain's departure from the European Union.
The move came after May conceded Parliament would defeat her twice-rejected
divorce deal with the EU again if she put it to a third vote.
Worried investors have shifted money into bonds, sending yields lower. The
yield on the 10-year U.S. Treasury slid to 2.40 percent from 2.45 percent late
Friday. At one point, the yield had fallen to 2.38 percent, briefly triggering
deeper declines in the stock indexes.
The 10-year Treasury yield is below the yield on the three-month Treasury
bill, a worrying sign that in the past has preceded recessions. That occurred
Friday.
APPLE TV: The company announced plans to launch a subscription TV service
but failed to impress investors. Its stock slid 1.2 percent. The company did
not say how much Apple TV Plus, which will be ad-free, will cost or when
exactly it will debut. It will compete with big streaming services including
Netflix and Amazon Video.
ENERGY: Benchmark U.S. crude gained 46 cents to $59.28 per barrel in
electronic trading on the New York Mercantile Exchange. The contract shed 22
cents on Monday to close at $58.82. Brent crude, used to price international
oils, rose 14 cents to $66.95 per barrel in London. It gained 6 cents the
previous session to $66.81.
CURRENCY: The dollar gained to 110.15 yen from Monday's 109.96 yen. The euro
fell to $1.1309 from $1.1313.
(BE)
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