Asian Stocks Rise After BOE Cut as Investors Await U.S. Payrolls

Asian stocks rose, paring their first drop in four weeks, after the Bank of England eased policy and as investors looked to Friday’s U.S. jobs report for hints as to the Federal Reserve’s next steps.

The MSCI Asia Pacific Index edged up 0.1 percent to 135.46 as of 9:01 a.m. in Tokyo, heading for a 0.7 percent decline this week. Japan’s Topix index added 0.2 percent after the Bank of Japan boosted daily exchange-traded fund purchases. The Bank of England cut rates to a record Thursday while unveiling a stimulus package aimed at containing the fallout from Brexit. U.S. payrolls are expected to rise in July, returning to a growth path, according to a Bloomberg survey of economists.

Asian equities are sputtering after rallying in July, their best month since March, even as countries from Japan to the U.K unveil fresh stimulus to keep global growth on track. Japan’s Topix has lost 17 percent this year as the yen surged despite a move to negative interest rates announced in January and a new round of fiscal stimulus unveiled last week.

Source: Bloomberg

PT Bestprofit Futures – MARKET

Japanese Shares Rise Amid U.S. Gains as Investors Weigh Earnings

Japanese shares rose for the first time in four days, tracking gains in U.S. shares, as companies including Suzuki Motor Corp. and TV Tokyo Holdings Corp. gained on earnings.

The Topix index advanced 0.7 percent to 1,281.29 as of 9:08 a.m. in Tokyo. The Nikkei 225 Stock Average climbed 0.7 percent. The yen traded at 101.29 per dollar after weakening 0.4 percent on Wednesday. The S&P 500 Index climbed 0.3 percent on gains in crude prices and as corporate earnings helped boost financial shares. U.S. nonfarm payrolls data for July are due Friday.

Futures on the S&P 500 climbed 0.1 percent. The underlying measure snapped a two-day retreat on Wednesday in a late day surge as a rebound in crude oil boosted energy producers, offsetting declines in defensive shares.

Earnings season continues in Japan, with Toyota Motor Corp. scheduled to report after the market close on Thursday. Of the 256 companies that have reported earnings so far and for which Bloomberg has estimates, 54 percent have beaten analyst expectations for profit, while 58 percent fell short of predictions for sales.

Strategists and investors see the Topix rising to 1,350 by year-end, according to the median forecast in a Bloomberg News survey as of Aug. 3. The benchmark gauge has fallen 18 percent this year through Wednesday, the second-worst performer out of 24 developed markets. 

Source: Bloomberg

PT Bestprofit Futures – MARKET