Asian stocks rose for a second day after U.S. shares halted a six-day rout.
The MSCI Asia Pacific Index gained 0.9 percent to 127.93 as of 9:05 a.m. in Tokyo. The Standard & Poor 500 Index jumped 3.9 percent, the most since 2011. Two things that have supported U.S. stocks in the past, dovish words from the Federal Reserve and improved economic data, halted a plunge that erased $ 2.2 trillion from equity values.
Global market turmoil has weakened the case for raising U.S. rates in September, Fed Bank of New York President William C. Dudley said, cautioning that it’s important not to overreact to short-term developments. Chinese stock-index futures signaled a rally, as contracts on the FTSE China A50 Index gained 1.7 percent.
Japan Topix index rose 2.4 percent. South Korea’s Kospi index gained 0.5 percent and Australia S&P/ASX 200 Index climbed 0.7 percent. New Zealand NZX 50 Index rallied 1.3 percent.
The S&P 500 rose the most since November 2011 in New York, while the Dow Jones Industrial Average jumped 619 points, or 4 percent. Trading was subject to the same fluctuations seen in overseas markets. A surge in the first few minutes of trading was more than halved before an afternoon rebound took over. E-mini futures on the S&P 500 added 0.1 percent Thursday.
Source : Bloomberg