On February 6, European markets have followed Asian markets lower as investors continued to dump shares.
Frankfurt, London and Paris all fell sharply at the open with losses of up to 3%, before recovering some ground.
In the US overnight the Dow Jones lost 4.6%.
Japan’s Nikkei 225 closed down 4.7%.
The sell-off began last week after data in the United States showed stronger wage growth, which raised expectations that US interest rates might start to rise more quickly to tackle inflation.
Frankfurt’s Dax and Paris’s CAC were down 2.2% and 2% respectively.
London’s FTSE 100 was down 150 points or 2% at 7,184.74 in mid morning trade.
On February 5, the FTSE 100 closed at its lowest level since April 2017.
The falls follow some good years for investors.
Last year, the Dow Jones was up 25% and London’s FTSE 100 rose 7.6%.
Hong Kong’s Hang Seng ended closed 5% lower and South Korea’s Kospi index gave up 2.6%. Australia’s benchmark S&P/ASX 200 lost 3.2%.
Japan’s Nikkei saw steeper falls overnight, with a loss of some 7% at one point.
Unlike elsewhere in the world, where interest rates are beginning to or are expected to start rising, Japan’s immediate economic outlook remains stagnant. The authorities there said there was little chance of interest rates being increased.
Traders returned to their desk in the aftermath of Friday’s rout to another bout of selling.
That left the Dow Jones Industrial Average index down 1,175 points, or 4.6% at the end of Monday’s session to 24,345.75.
The decline was the largest in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of “Black Monday” – the day Standard & Poor’s downgraded its credit rating of the US.
The drop on the Dow Jones was closely followed by the wider S&P 500 stock index, down 4.1% and the technology-heavy NASDAQ, which lost 3.7%.
However, the White House reassures investors saying it was focused on “long-term economic fundamentals, which remain exceptionally strong”.
Asian markets have tumbled after results from the American presidential polls suggested a victory for Donald Trump looked increasingly likely.
All major markets in the region are now lower, with money flowing into safe haven stocks, gold and currencies including the yen.
Meanwhile the Mexican Peso has hit an all-time low against the dollar.
As traders had expected a comfortable Hillary Clinton win, even a tight race is enough to spark volatility.
Image source Flickr
Japan’s Nikkei 225 is down by 5.2% while the Hang Seng in Hong Kong is 3.8% lower and the Shanghai Composite has lost 1.6%.
Australia’s ASX 200 dropped by 2.1% while the Kospi in South Korea is 3.1% lower.
Earlier, American and European markets closed higher – but US stock futures fell sharply with the Dow Jones index expected to lose more than 4% – 800 points – when trading resumes on Wall Street on November 9.
The Mexican peso has seen some of the most notable fluctuations, falling more than 10% against the dollar.
The peso’s movements are seen by many as a good indicator of the election’s likely outcome, with an upward movement suggesting Hillary Clinton is ahead.
Mexico is expected to suffer if Donald Trump was elected because of his pledges to build a wall along the US border with the country and renegotiate their trade agreement.
Meanwhile the Japanese yen is viewed as a safe haven currency in situations of international volatility, so a strengthening yen suggests traders see a Hillary Clinton victory as less likely.
Hong Kong shares sunk on February 11 as trading resumed after the Lunar New Year break.
The Hang Seng index closed down 742.37 points or 3.85% to 18,545.80.
The Chinese markets remained closed for a longer New Year break. Those markets that were open in the region over the past days had all seen hefty losses.
Japanese shares had tumbled in to bear territory after a two-day rout, but the Nikkei is closed on February 11 for a national holiday.
The continuing concern over the global economy and China’s slowing growth was confirmed by Federal Reserve chair Janet Yellen in a speech to Congress on February 10.
Janet Yellen warned that financial conditions in the US had recently become “less supportive of growth”, while China’s “unclear” currency policy was fuelling global stock market volatility.
“This uncertainty led to increased volatility in global financial markets and, against the background of persistent weakness abroad, exacerbated concerns about the outlook for global growth.”
South Korean shares also resumed trade after the New Year break and joined the regional downward trend.
The Kospi index fell sharply by 2.9% to close at 1,861.54 points, after retreating as much as 3.1%, its biggest percentage loss since May 2012.
Auto makers were among the worst hit as fresh data showed that vehicle exports dropped by almost 20% in January, because of falling demand in emerging markets.
Hyundai, Kia and Ssangyong all lost around 2%.
Australian shares, though, managed to edge higher on February 11, providing some relief after two days of losses.
The ASX/200 closed 1% higher at 4,821.10 points after losing more than 4% since the beginning of the month.
Before the market opened, the Virgin Australia airline reported a swing back to half-yearly profit after cutting costs and profiting from lower fuel prices.
The forecast of full-year profitability comes after two years of net losses.
However, investors seem to have expected better results and remain cautious about the airline’s prospects.
Virgin Australia shares fell by more than 6% throughout the day.
Asian shares were in mixed territory on February 5 ahead of a closely watched US monthly jobs report.
Japan’s Nikkei 225 closed down 1.32% to 16,819.59 points as a stronger yen against the dollar hurt the country’s big exporters for a second day.
Toyota and Honda shares finished the day down about 2%, while Mazda shed nearly 5%.
At the close of trade, Toyota reported a 4.7% rise in net income for the three months to December.
However, the company’s operating profit for the quarter fell by 5.3%, missing forecasts.
Australia’s S&P/ASX 200 spent the day in negative territory and closed flat, down 0.08% to 16,819.59.
The country’s big lenders had weighed on the market and analysts said traders were being cautious ahead of a US jobs report due out later.
Energy companies regained lost territory late in the day, however, with Woodside finishing up 0.41% and rival Santos up 2.2%. Mining giant BHP finished up close to 5%.
Official numbers released earlier showed Australia’s retail sales had come in flat for the month of December – a 0.4% gain was expected.
However, analysts said the numbers still supported economic growth.
In Hong Kong, the Hang Seng was up 0.4% to 19,255.88 points in afternoon trade, while the mainland’s benchmark Shanghai Composite closed down 0.63% to 2,763.49.
South Korea’s Kospi index closed flat, up just 0.08% to 1,917.79.
Asian stock markets were trading largely lower on February 2 following a lackluster lead from the US overnight and as oil prices fell again.
Japan’s Nikkei 225 closed down 0.64% at 17,750.68 points.
Tokyo’s benchmark index closed up nearly 2% on February 1, its highest close since early January, after a surprise move by the Bank of Japan cut rates to -0.1%.
In Australia, energy-related stocks weighed on the market, hurt by oil price worries.
Australia’s benchmark ASX 200 shed 1%, dragged down by shares in energy giants including BHP, Woodside and Santos.
Investors also reacted to a move by ratings agency S&P to lower its rating for BHP to “A” from “A+” due to falls in commodity prices, among other issues.
Shares in Woodside closed down 3.2%, Santos lost 4.26%, and BHP ended the trading day down 2.16%.
As widely expected, the Reserve Bank of Australia kept its rates on hold on February 2 at a record low of 2%, where they have been since May 2015.
Meanwhile, Hong Kong’s Hang Seng index was down 0.81% at 19,441.95 in afternoon trade, while the Shanghai Composite was bucking the regional trend to be up 1.93% to 2,741.39.
South Korea’s Kospi index closed down 1% to 1,906.60, in line with the rest of the region.
Europe’s stock markets have cut their losses after oil rose back above $30 a barrel, despite another slide in Asia on January 26.
London’s FTSE 100 was down 0.5% at 5,847.5 points, with declines of about 0.4% in both Frankfurt and Paris.
Shanghai tumbled 6.4% to its lowest close since December 2014, while the Hang Seng in Hong Kong fell 2.4%.
Brent crude rose 1.2% to $30.87 a barrel, reversing earlier falls, while US oil was up 1% at $30.63.
Stock markets have made the rockiest start to the year in recent memory as worries over the economic strength of China- considered for years the engine of world economic growth – have intensified.
Other investment prices have been buffeted by falling confidence.
Although China is still growing the pace is slowing, and as demand for key industrial products such as oil and iron ore slips back, so do their prices.
Oil prices were hit again earlier on January 26 by figures from China showing annual rail freight volume – a key economic indicator – fell 11.9% last year, compared with a decline of 3.9% in 2014.
The Shanghai index has already fallen about 17% this year.
On the FTSE 100, among the top risers were Randgold Resources and Fresnillo.
Gold rallied to its highest level since November at $1,112.86 an ounce. The safe-haven commodity has risen nearly 5% this year, after sliding more than 10% in 2015.
The US Federal Reserve’s rate-setting committee starts a two-day policy meeting on January 26 and is not expected to make any change.
Meanwhile, Chinese state media have warned billionaire investor George Soros against betting on falls in the yuan or the Hong Kong dollar.
George Soros, who made more than $1 billion from shorting sterling in 1992, has said he was betting against the S&P 500, commodity-producing countries and Asian currencies, although he has not specifically mentioned the yuan or Hong Kong dollar.
China’s central bank has been making plenty of liquidity available to the banking system to avoid any cash squeeze ahead of the long Lunar New Year holiday early next month.
Traders said that the bank would inject 440 billion yuan into the money markets, the biggest daily injection in three years.
Japan stock market has traded higher, despite the latest trade figures showing exports falling for a third straight month.
Its exports fell by 8% in December 2015 from a year earlier, suggesting that China’s slowdown continues to affect demand.
The Nikkei 225 index rose 0.9%, closing at 17,110.91, building on January 22 rally when it climbed almost 6%.
Global stock markets surged late last week on hints that central banks in Europe and Japan would continue monetary easing.
On January 21, sentiment got a boost as European Central Bank (ECB) President Mario Draghi suggested the bank would review its policies in March and could launch further stimulus.
Photo AsiaNews
One day later, media reports suggested that the Bank of Japan (BOJ) would also ease further.
The BOJ is set for its first meeting of 2016 later this week, where it is expected to make a policy announcement as weak growth and a drop in oil prices weigh on its attempts to lift inflation.
Led by energy shares, Chinese markets also continued last week’s strong finish, trading higher both in Hong Kong and on the mainland markets.
The Hang Seng index in Hong Kong rose by 1.5% to 19,373.09, while the Shanghai Composite edged 0.4% higher to 2,926.04.
In Australia, the benchmark S&P ASX 200 closed 1.8% up at 5,006.60 points.
The commodity-heavy market was helped by a rebound in both oil and iron ore prices.
In South Korea, the Kospi index followed the region’s trend, increasing 0.7% to close the day at 1,893.43 points.
Japan stock market hit a one-year low in January 18 trade following big falls in the US and as oil prices dropped below $28 a barrel for the first time since 2003.
The benchmark Nikkei 225 closed down 1.1% at 16,955.57 – its lowest close in a year.
In Australia, investors also reacted to falling oil prices.
The benchmark S&P/ASX 200 closed down 0.7% at 4,858.70, with energy-related stocks and banking shares weighing on the index.
BHP Billiton shares fell 3%, Woodside lost 2.6%, and Santos shares fell 8.4%.
Photo Reuters
Australia’s big lenders also saw falls on January 18, with ANZ’s shares down 2% and Westpac’s down 1%.
In South Korea, the benchmark Kospi index closed flat at 1,878.45 after spending much of the day in negative territory.
In China, analysts said they expected markets to be hurt further this week by falling oil prices, together with continued worries about the country’s economic growth. China’s latest quarterly gross domestic product numbers are out on January 19.
Housing data released on January 18 showed house prices rose 1.6% in December from a year earlier. China’s housing market accounts for about 15% of the economy and the latest numbers mark the third consecutive month of year-on-year gains.
Hong Kong’s Hang Seng index closed down 1.5% at 19,237.45, while the Shanghai Composite finished the day 0.44% higher at 2,913.84.
Asian markets traded lower on December 4, following a global trend, as investors reacted negatively to the European Central Bank’s (ECB) policy-easing moves.
The ECB cut its deposit rate by 0.1 percentage point to -0.3%.
The bank also extended its asset purchase program, but did not increase its monthly government bond purchases.
Investors were expecting a bigger cut in the rates, analysts said.
Japan’s Nikkei 225 index closed down 2.2% to 19,504.48, leading losses across the region.
The six-month extension of its stimulus program was seen as the bare minimum. Traders were looking for a one-year extension of the plan – or even an open-ended option.
China’s stock market fell after four consecutive days of gains, with Shanghai Composite index closing down 1.67% at 3,524.99.
Hong Kong’s Hang Seng index closed down 0.81% at 22,235.89, in line with global markets.
Australia’s S&P/ASX 200 index closed down 1.5% at 5,151.60 despite retail sales rising 0.5% in October from the month before.
It was the third month of solid growth as shoppers spent big on household goods and at department stores.
South Korea’s Kospi index finished lower, falling by 1% to 1,974.4.
Asian markets traded higher on September 30, recovering from the previous session’s steep losses, despite disappointing economic news from Japan.
The Japanese index, Nikkei 225, led the region’s gains, closing up 2.7% at 17,388.15, after losing more than 4% on September 29.
Investors ignored data that showed Japanese factory output shrank by 0.5% in August from July, and retail sales also fell short of expectations.
Investors are awaiting the Bank of Japan’s business confidence survey.
Bank of Japan’s quarterly Tankan survey due on October 1 is expected to show that business sentiment worsened in the three months to September.
Shares in Japan Tobacco fell 6.7% on concerns that it has paid too much to buy the rights for Reynolds American’s Natural American Spirit tobacco brand outside the US for 600 billion yen ($5 billion).
Chinese shares headed higher as investors took in news of a new tax cut on some car sales.
A government announcement on September 29 said the sales tax on cars with smaller engines would be halved. The cut will be effective from October 1, 2015, until the end of 2016.
China is the world’s biggest market for cars and the new tax cut will apply to about 70% of the market.
Hong Kong’s Hang Seng index closed up 1.14% at 20,851.32, while the Shanghai Composite closed up 0.48% at 3,052.78.
Australia’s benchmark S&P/ASX 200 index closed up 2.1% at 5,021.60 after hitting a two-year low on Tuesday.
Meanwhile, South Korea’s Kopsi index ended up 1% to 1,962.91 as it reopened following public holidays.
Asian shares continued to fall on September 2, with Shanghai opening down more than 4% amid continuing worries about China’s growth.
On September 1, data suggesting China’s manufacturing sector was shrinking at its fastest pace in three years ignited a global market sell-off, resulting in US stocks closing down nearly 3%.
The Shanghai Composite recovered some ground to trade down 3.6% to 3,054.17.
Hong Kong’s Hang Seng index was lower by 1.7% to 20,818.22 in early trade.
Chinese markets will close at the end of September 2 for a two-day holiday to commemorate the end of World War Two.
Mainland Chinese stocks have lost nearly 40% of their value since June, despite attempts by the government and regulators to prop up the market.
Meanwhile, data showing US factory activity fell to a more than two-year low in August added to the already grim sentiment among investors.
Crude oil futures also continued downwards after an 8% fall in US trade, amid concerns about slowing demand from China.
Japan’s benchmark Nikkei 225 index was up 0.8% to 18,296.67 after leading the region’s losses in the previous session, down nearly 4%.
Australia’s S&P/ASX 200 was lower by 1.2% at 5,036.60 points as economic growth figures for the second quarter came in below expectations.
The economy expanded 0.2% from the previous quarter and was up 2% compared with the same period last year.
Economists were expecting quarterly growth of 0.4% while the annual rate was forecast to be up 2.2%.
In South Korea, shares were also lower after government data showed exports fell 4.3% in July, while imports rose 0.7%.
That led the current account surplus to fall to $9.5 billion in seasonally adjusted terms from a record high of $10.7 billion in June.
South Korea’s benchmark Kospi index was down 0.3% at 1,908.50.
China’s stock market traded lower once again on August 20, despite Beijing’s efforts to calm markets.
China’s benchmark Shanghai Composite was 1.5% down to 3,735.92 points.
The negative open comes after the index had seen strong volatility since the beginning of the week.
Traders appeared not to respond to efforts by the central bank to provide more liquidity to stabilize markets.
Hong Kong’s Hang Seng index was also pulled lower, down 1.6% to 22,794.63 points.
Shares across the rest of Asia also fell on August 20 over worries about China’s slowing growth and volatile equities.
Meanwhile, it was a weak lead from Wall Street overnight where oil companies saw sharp declines after another drop in the price of crude.
The minutes from the July meeting of the Federal Reserve also failed to inspire markets.
The minutes showed policymakers thought conditions for a US rate rise “were approaching”, but there remained worries over inflation and the strength of the global economy.
The region’s largest stock market, Japan, closed down.
Nikkei 225 index ended day down 0.9% at 20,033.52 points.
In Australia, the S&P/ASX 200 index finished with a sharp drop of 1.7% to 5,290.50 points.
Shares in the Australian flagship carrier Qantas dropped by more than 6% despite the airline reporting a return to full-year profit earlier in the day.
In South Korea, the benchmark Kospi index finished 1.3% down at 1,914.55 points.
Chinese stocks were flat on August 14 as the central bank raised the trading range of the yuan.
China’s central bank set the yuan rate at 6.3975 per dollar compared to Thursday’s close of 6.3982.
The rate is set daily and allows a 4% fluctuation – over the past week, the bank had guided the yuan to a record low sparking fears of a currency war to help lagging Chinese exports.
The benchmark Shanghai Composite was flat at 3,947.47 points.
Following the mainland’s lead, Hong Kong’s Hang Seng also remained unchanged, trading flat at 24,005.92.
Japanese shares traded lower with the Nikkei 225 index closing 0.4% lower at 20,519.45 points.
Investors are anticipating next week’s release of Japan’s economic growth for the past three months.
In Australia, the S&P/ASX 200 also fell by 0.5% finishing at 5,360.90 points as investors took a cue from Wall Street’s flat close and the ongoing uncertainty over the yuan.
China’s currency is important to Australia as it is the main export market for the country’s natural resources.
In South Korea, the Kospi index remained closed on August 14 as the country will mark a national holiday on August 15.
Asian stock markets opened higher on November 6 after US stocks hit record highs on Republicans taking control of the Senate.
The Republican victory raised investor hopes for more pro-business and energy-friendly policies from the US government.
The Dow Jones jumped to a new record close of 17,484.53, while the S&P 500 also finished at a record 2,023.57.
Japan’s Nikkei 225 index was up 0.4% to 17,012.71 after five days of gains.
The yen strengthened marginally against the dollar to 114.63, down from 114.69 yen in New York trade.
Asian stock markets opened higher after US stocks hit record highs on Republicans taking control of the Senate
In Greater China, Hong Kong shares opened up 0.2% with the Hang Seng index at 23,737.76.
The benchmark Shanghai Composite index was higher 0.1% to 2,423.23 points.
In Australia, shares were trading lower 0.1% with the benchmark S&P/ASX 200 index at 5,510.20 points despite news that employment figures rebounded in October.
Government data showed that Australia added an estimated 24,100 jobs in October, recovering from a revised 23,700 drop in September. But concerns about the reliability of the data that has been revised a few times in past months weighed on investor sentiment.
Shares of struggling television channel Ten Network rose as much as over 10% in early trade after it said it had hired Citigroup to assess “strategic options” as reports surfaced of takeover offers.
In South Korea, the Kospi index was up over 0.3% at 1,937.78 points.
Asian markets opened lower on October 16 after Wall Street tumbled on US economic data, fuelling growth concerns.
Data from the US showed retail sales and producer prices both fell in September, dimming expectations of an interest rate hike by the central bank.
The S&P 500 fell as much as 3%, briefly turning negative for the year before closing down 0.8%.
Japan’s shares fell more than 2% to a four-and-a-half-month low.
In early trading the Nikkei 225 was at 14,751.77. The dollar was at 105.92 yen, flat from New York trade.
Asian markets opened lower after Wall Street tumbled on US economic data
Among the losers were shares of Toyota, down over 2% after the automaker issued a recall of 1.75 million vehicles on Wednesday.
Hong Kong shares opened down almost 1% as the Hang Seng Index fell 226.55 points to 22,913.50.
On the mainland, the Shanghai Composite fell 0.5% to 2,451.65 points after data showed that the rate of inflation in September fell, adding to evidence of a slowing economy.
In Australia, the benchmark S&P/ASX 200 was lower 1% at 5,194.80 points.
Shares of Woodside Petroleum, Australia’s largest independent oil and gas producer, were lower 0.1% despite its third quarter production results beating forecasts.
In South Korea, shares followed the global downtrend.
The benchmark Kospi was down 0.7% after the Bank of Korea cut its interest rate for the second time in three months on October 15, and also downgraded its growth forecasts for the economy for this year.
Asian markets’ reactions are mixed after the European Central Bank (ECB) introduced aggressive easing measures aimed at stimulating the eurozone economy.
The ECB is the first major central bank to introduce negative interest rates, which will see it become cheaper for banks to lend money to businesses.
Japan, Hong Kong and Australian stocks initially rose in reaction before giving up their gains in later trade.
The muted response comes despite a strong rally on Wall Street.
Asian markets’ reactions are mixed after the ECB introduced aggressive easing measures aimed at stimulating the eurozone economy (photo AP)
The S&P 500 and Dow Industrial Average closed at new record highs on Thursday on the new stimulus measures out of Europe.
European stock markets and the euro currency also logged gains on Thursday.
The ECB announcement saw it cut the deposit rate for banks to zero from -0.1% and reduce the benchmark interest rate to 0.15% from 0.25%.
In addition to the interest rate cuts, the ECB will offer a package of cheap long-term loans to banks which are worth up to 400 billion euros.
ECB President Mario Draghi also signaled there may be more easing measures to come.
CMC Markets analyst Max Ho called the ECB’s moves “well-telegraphed”.
“We witnessed history in the making,” he said.
“While this move to cut deposit rates to a negative is considered to be bold and unprecedented, some observers are not convinced that it will have a significant impact on existing bank lending.”
Analysts said Asian investors are now turning their attention to US jobs data due out Friday.
Non-farm payrolls for May are expected to show an improvement in the US employment market and are crucial to the US central bank’s future policy decisions.
Analysts forecast the Federal Reserve may raises interest rates and end its extraordinary stimulus known as quantitative easing (QE) once the jobs market and overall US economy is strong enough.
Concerns about a reduction in QE, or the Fed taper, led to a sell-off in emerging market stocks and currencies in Asia last year.
Asian shares fell after the US Federal Reserve hinted that it might raise interest rates as soon as 2015.
Hong Kong’s Hang Seng index officially hit “bear” territory, falling by 1% for a cumulative 20% decline since December 2, 2013.
The Nikkei fell 1.65% and the Shanghai Composite dropped 1% as well.
In her first meeting as Fed chair, Janet Yellen said the central bank would increase rates about six months after finishing its bond-buying program.
Most analysts expect that will occur towards the end of 2014.
The early rate rise indicator surprised many investors, who had expected rates to remain low for a longer period of time.
Asian shares fell after the US Federal Reserve hinted that it might raise interest rates as soon as 2015
That led to renewed fears that the end of easy money could negatively impact emerging economies that relied on foreign investors.
The falls in Asian markets followed a broad sell off in US markets.
The decline in the benchmark Nikkei comes despite Bank of Japan (BOJ) governor Haruhiko Kuroda’s comments on Wednesday that the country was on track to meet the bank’s 2% inflation target.
The BOJ has been engaged in a massive stimulation effort to combat deflation and encourage spending.
Japan recently reported its smallest trade gap in nine months, after January saw a record surge in imports ahead of the tax changes.
Most Asian markets have fallen again as investors continue to react to news that the Federal Reserve could begin to scale back its stimulus programme.
South Korea’s main index dropped 1.5% while Australia’s lost 0.4%. However, Japan’s Nikkei reversed early losses.
The indexes in Shanghai and Hong Kong were down more than 2% in early trade but pared losses.
On Thursday in the US, the Dow Jones share index fell 2.3% – its biggest drop this year.
The Fed has been trying to support the weak US economy by buying bonds at a rate of $85 billion a month, under a policy known as quantitative easing (QE).
However, on Wednesday, Fed chairman Ben Bernanke said that if the US economy continued to show sign of improvement the central bank could start to slow down its bond purchases as early as this year and end the programme next year.
Most Asian markets have fallen again as investors continue to react to news that the Federal Reserve could begin to scale back its stimulus programme
The excess liquidity in the US has meant a lot of funds have been flowing into emerging markets, especially in Asia.
“Asia has benefited from US capital inflows, partly in relation to QE,” said Mitul Kotecha, from Credit Agricole CIB.
“It has been force-fed with steroids, and now that the steroids are going to be pulled back what will happen is a period of transitional volatility that can continue through summer.”
Currencies in Asia were weak as well against the US dollar, however the weakness in the Japanese yen caused a big reversal in the Nikkei in late trade.
The Nikkei, which had sank more than 2% during the morning trading session, finished 1.7% higher.
A weak yen is good news for Japanese exporters as it makes their goods cheaper overseas and boosts profits that are repatriated back home.
Exporters led the gains with Suzuki Motor jumping nearly 4% and Fast Retailing surging more than 6%.
Asian markets and the euro have risen after EU officials agreed a bailout deal for Cyprus, easing fears that the country’s banking system problems may spread.
Cyprus will now get a 10-billion euro ($13 billion) cash injection to keep its banking system running and prevent it from crashing out of the eurozone.
Investors had feared that its exit from the bloc may escalate the region’s debt crisis and derail a global recovery.
Shares in Japan, South Korea, Hong Kong and Australia rose on the news.
“The news was what markets were waiting for, some kind of an agreement,” said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.
Japan’s Nikkei 225 index rose 1.7%, South Korea’s Kospi gained 1.5%, Hong Kong’s Hang Seng added 0.6% and Australia’s ASX200 was up 0.5%.
A failure to reach a deal may have seen the European Central Bank (ECB) cut emergency funding to Cyprus’s two biggest banks, leading to an effective bankruptcy of Cyprus’s government.
The fears were that such a move may prompt the country’s exit from the bloc.
Many analysts had been concerned that Cyprus’s exit may cause a loss of confidence across the eurozone and prompt investors to withdraw from other troubled economies of the bloc, such as Greece.
These concerns had seen investors ditch the euro over the past few days in favor of other assets, such as the Japanese yen and US dollar, seen as comparatively safer.
Asian markets have risen after EU officials agreed a bailout deal for Cyprus
However, news of the Cyprus deal boosted the euro.
The single currency gained 0.8% against the US dollar. It was trading at $1.3044 in early Asian trade.
It rose 1.3% against the Japanese yen to trade at 123.81 yen.
“This will likely limit the euro’s downside, with those who shorted the euro covering their positions, and improve general risk sentiment,” said Hiroshi Maeba, head of foreign exchange trading for UBS in Tokyo.
Ben le Brun, an analyst at OptionsXpress in Sydney, added that the deal was likely to have a positive impact on the oil markets as well.
“We should see some positive sentiment reverberate through energy markets overall for at least the next 24 to 48 hours,” he said.
Brent Crude rose 0.3% to $108.34 per barrel in Asian trade, while US Light Crude gained 0.4% to $94.1 per barrel.
Cyprus had agreed a bailout deal with the EU and the IMF last week.
However, the EU and IMF had asked Cyprus to raise 5.8 billion euros in order to secure the funds.
They had proposed that Cyprus impose a one-off levy on bank deposits in order to raise the cash, a move that triggered protests in Cyprus and resulted in savers rushing to ATM machines to withdraw their money – a move that brought fears of a run on the banks.
The Cyprus parliament rejected the proposal last week, delaying an agreement to secure the bailout funds.
According to the latest deal, all deposits under 100,000 euros will be “fully guaranteed”.
However, Laiki (Popular) Bank, the country’s second-biggest, will be wound down and holders of deposits of more than 100,000 euros will face big losses.
The levy on accounts in Laiki Bank could be as high as 40%, correspondents say.
Large deposits in the Bank of Cyprus, the country’s biggest bank, will also face a levy.
Jeroen Dijsselbloem, president of the Eurogroup of eurozone finance ministers, told a press conference in Brussels that the percentage to be levied on large deposits in the Bank of Cyprus will be decided in the coming weeks.
Analysts said that while the draft deal had helped ease market jitters, uncertainties surrounding its implementation were likely to hurt sentiment in the coming days.
European and Asian markets have gained after a short-term deal to stave off the so-called US fiscal cliff was reached.
UK shares jumped 1.5% while other European indexes were also higher.
Failure to agree a deal would have triggered spending cuts and tax increases worth $600 billion.
There had been fears that the measures would have derailed the modest recovery in the world’s biggest economy and perhaps even push it back into recession.
German stocks gained by 1.6%, while France’s Cac 40 rose 1.4% and Italy’s stocks gained 2%.
In the US, the lower chamber of Congress passed a deal backing a compromise that had already passed in the Senate, which raises taxes for the wealthy and delays spending cuts for two months.
The fiscal cliff measures – cutting spending and increasing taxes dramatically – came into effect automatically at midnight on Monday when George W. Bush-era tax cuts expired.
European and Asian markets have gained after a short-term deal to stave off the so-called US fiscal cliff was reached
The 31st of December deadline triggered tax increases of about $536 billion and spending cuts of $109bn from domestic and military programmes – which has now been averted.
Shares worldwide had been hurt in November and December by fears that the US would not be able to reach any kind of agreement and would go off the cliff.
Earlier, Asian shares gained on the news of the deal. The US is also a key market for most of Asia’s export-dependent economies.
The US dollar rose, jumping against the Japanese yen. The Japanese currency was at 87.30 yen against the US dollar at one point, its lowest level since July 2010.
The yen has fallen almost 9% against the US dollar since November 15.
Asian markets have risen, following gains on Wall Street, after the US Federal Reserve unveiled its latest stimulus plan.
The US central bank said it would buy $40 billion of mortgage debt a month and kept interest rates at below 0.25%.
It said it would also continue its programme to reduce long-term borrowing costs for firms and households.
Japan’s Nikkei 225 index rose 1.8%, South Korea’s Kospi gained 2.6% and Hong Kong’s Hang Seng added 2.5%.
This followed gains of 1.6% rise in the Dow Jones and S&P 500 indexes on Thursday.
Asian markets have risen, following gains on Wall Street, after the US Federal Reserve unveiled its latest stimulus plan
Investors are hoping the measures will revive growth in the US economy, the world’s biggest, and a key market for Asian exports.
“They’re saying that the punch bowl, the fuel for the economy, isn’t going away – it’s going to be here as long as you need it,” said Tony Fratto, managing partner at Hamilton Place Strategies, a policy consulting firm.
There have been growing fears about the global economy with a weak recovery in the US and the ongoing debt crisis in the eurozone.
The slowdown in China’s economy, the world’s second-largest, and one of its biggest drivers of growth after the global financial crisis, has fanned those fears.
Prompted by these concerns, policymakers in these regions have been taking measures to try to spur a fresh wave of growth.
The Federal Reserve’s announcement came days after the European Central Bank (ECB) announced its latest plan.
Last week, the ECB said that it would buy bonds from the bloc’s debt-ridden nations in an attempt to bring down their borrowing costs.
Meanwhile, China has cut its interest rates twice since June to bring down borrowing costs for businesses and consumers. Beijing has also lowered the amount of money that banks need to keep in reserve three times in the past few months to further encourage lending.
This week South Korea has also unveiled two stimulus measures aimed at boosting domestic demand and helping small businesses.
Analysts said the moves had helped reassure investors and markets that policymakers were doing all they could to ensure growth in the global economy.
“You’re witnessing global economic stimulus across the board,” said Quincy Krosby, a market strategist at Prudential Financial.
“The Fed’s actions are occurring in conjunction with the European Central Bank’s commitments to support the euro and amid talk that China could also deliver a stimulus package.”
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