Asian stocks soar as supposed concerns about China ebb away

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In what is now a near-predictable response following a severe market shellacking, Asian stocks are soaring this morning, pushing aside the supposed Chinese economic concerns that rattled markets on Tuesday.

Yes, it’s a dream market for day traders, and one that will leave many long term investors scratching their heads.

The Nikkei in Japan, down 4% yesterday, has gained nearly 2% today, rocketing higher on the back of bargain hunting and short covering.

The ASX 200 is also finding form, putting on 1.5% after falling close to 4% on Tuesday.

The one exception to the rule is the KOSPI in South Korea which is currently down more than 1%. Markets in the nation were closed yesterday for a public holiday, suggesting the decline today is merely a delayed response. Whether the index can maintain the losses amidst a sea of optimism elsewhere is debatable.

Despite the renewed optimism gripping Asia, S&P 500 futures are flat.

Likes stocks, risk-orientated currencies are also outperforming. The Australian and New Zealand dollars are up 0.4% against their US counterpart, and even more against the Japanese yen.

Elsewhere the US dollar is gaining against the yen but is weaker against the euro.

In commodities, WTI crude futures are lower after squeezing higher overnight. Gold and silver are largely unchanged while Chinese copper and iron ore futures are modestly higher.

The full regional scoreboard is found below.

Stocks

  • ASX 200 4994.90 , 76.47 , 1.55%
  • Nikkei 225 17266.43 , 335.59 , 1.98%
  • Shanghai Composite 3038.14 , 0.00 , 0.00%
  • Hang Seng 20556.60 , 0.00 , 0.00%
  • KOSPI 1920.86 , -21.99 , -1.13%
  • Straits Times 2787.94 , -3.98 , -0.14%
  • S&P 500 Futures 1874.25 , -0.25 , -0.01%

Forex

  • USD/JPY 119.93 , 0.22 , 0.18%
  • USD/CNY 6.3621 , -0.0064 , -0.10%
  • AUD/USD 0.7015 , 0.0033 , 0.47%
  • NZD/USD 0.6372 , 0.0032 , 0.50%
  • AUD/JPY 84.12 , 0.54 , 0.65%
  • EUR/USD 1.1254 , 0.0009 , 0.08%
  • GBP/USD 1.5151 , 0.0004 , 0.03%
  • USD INDEX 95.891 , 0.0360 , 0.04%

Commodities

  • Gold $1,126.71 , -$0.35 , -0.03%
  • Silver $14.60 , -$0.01 , -0.07%
  • WTI Futures $44.71 , -$0.52 , -1.15%
  • Copper Futures ¥38,250 , ¥220 0.58%
  • Iron Ore Futures ¥367.00 , ¥1.50 , 0.41%

10-Year Bond Yields

  • Australia 2.610%
  • New Zealand 3.300%
  • Japan 0.331%
  • Germany 0.581%
  • UK 1.751%
  • US 2.068%

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