Japan Shares Recoup Brexit Losses on Fresh Stimulus Expectations

Japanese shares extended a rally for a third day to recoup losses from the Brexit vote amid heightened expectations for fresh stimulus.

The Topix index rose 1.9 percent to 1,310.22 at 9:03 a.m. in Tokyo. The measure, which plunged 7.3 percent on June 24 after Britain voted to leave the European Union, has now joined global equities to recover from the decline. The yen was little changed at 104.70 per dollar after the biggest two-day drop since 2014. Prime Minister Shinzo Abe ordered his economy minister to compile stimulus measures this month. The Sankei newspaper reported that government officials are considering “helicopter money” as a policy option.

The Nikkei 225 Stock Average added 2 percent to 16,415.66. In the U.S., the Dow Jones Industrial Average joined the S&P 500 Index to close at a fresh record, with U.S. equities climbing a third day as crude rallied and Alcoa Inc.’s results bolstered optimism on corporate earnings. Futures on the S&P 500 were little changed on Wednesday.

Source : Bloomberg

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U.S. Stocks Advance Amid Fresh Era Following Fed Rate Increase

U.S. stocks rose, extending the Standard & Poor’s 500 Index’s longest winning streak since October, amid Federal Reserve assurances that the pace of future interest-rate increases will be gradual after the central bank raised borrowing costs for the first time since 2006.

The S&P 500 gained 0.1 percent to 2,075.25 at 9:32 a.m. in New York, adding to an advance this week that has the gauge up more than 3 percent.

The S&P 500 surged 1.5 percent Wednesday after the Fed’s first rate rise in almost a decade. Chair Janet Yellen delivered a two-pronged message that stock market investors cheered: The U.S. economy is performing well and the central bank is in no rush to raise interest rates again. A three-day gain in U.S. equities erased losses for the year, while the volatility measure known as the VIX has fallen 27 percent since the start of the week.

The decision by the FOMC to raise rates was unanimous. Fed officials forecast that the short-term policy rate will rise to 1.375 percent at the end of 2016, implying four quarter-point increases in the target range next year, based on the median number from 17 officials.

Source: Bloomberg