A man looks at an electronic stock board outside a securities firm Monday, June 3, 2013, in Tokyo. Uncertainty about the U.S. Federal Reserve's next course of action and a sharp, sudden plunge on Wall Street sent Asian stock markets lower Monday. Japan?s Nikkei 225 index lost 2.2 percent to 13,475.64, echoing U.S. stock markets losses Friday. The Dow dropped more than 200 points, its worst drop in six weeks. (AP Photo/Junji Kurokawa)
A man looks at an electronic stock board outside a securities firm Monday, June 3, 2013, in Tokyo. Uncertainty about the U.S. Federal Reserve's next course of action and a sharp, sudden plunge on Wall Street sent Asian stock markets lower Monday. Japan?s Nikkei 225 index lost 2.2 percent to 13,475.64, echoing U.S. stock markets losses Friday. The Dow dropped more than 200 points, its worst drop in six weeks. (AP Photo/Junji Kurokawa)
BANGKOK (AP) ? Asian stock markets recovered modestly Tuesday, after negative economic news out of the U.S. was neutralized by the belief among many investors that the U.S. central bank would maintain its stimulus program to help the economy.
Japan's Nikkei 225 index rose 0.3 percent to 13,305.72. Australia's S&P/ASX 200 rose 0.1 percent to 4,893.90. Hong Kong's Hang Seng rose 0.1 percent to 22,312.52. South Korea's Kospi fell 0.3 percent to 1,983.21.
A report that showed U.S. manufacturing activity at its lowest level in nearly four years kept Wall Street afloat, oddly enough, by convincing investors that the Federal Reserve would not scale back on its massive bond-buying effort.
Speculation about the Fed's intentions regarding its program, called quantitative easing or QE, has sent stocks on a rollercoaster ride in recent sessions. The Fed purchases $85 billion a month in bonds and the proceeds eventually translate into bank loans intended to spur borrowing and spending. All that extra cash sloshing around the economy pushes interest rates down, which makes stocks more appealing to investors.
Worries that the good times might end if the Fed pulls the QE plug sent Asian stocks plummeting on Monday. But a weaker-than-anticipated U.S. manufacturing survey released later in the day led investors to believe it is more likely that the Fed would continue with QE, a positive for stocks. Wall Street closed higher.
Figures released Monday suggested the eurozone may be stabilizing somewhat. The monthly manufacturing purchasing managers' index from financial information provider Markit rose to 48.3 in May from the initial estimate of 47.8 ? the upward revision takes the index nearer to the 50 threshold between expansion and contraction.
On Monday in New York, the Dow Jones industrial average closed up 0.9 percent, at 15,254.03. The Standard & Poor's 500 index rose 0.6 percent to 1,640.42. The Nasdaq composite index rose 1 percent to 3,465.37.
Benchmark oil for July delivery fell 40 cents to $93.06 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.48 to close at $93.45 per barrel on the Nymex on Monday.
In currencies, the euro fell to $1.3061 from $1.3076 late Monday in New York. The dollar rose to 99.59 yen from 99.45 yen.
___
Follow Pamela Sampson on Twitter at http://twitter.com/pamelasampson
Associated Presswhitney cummings maine caucus whitney houston has died whitney houston death the vow the voice season 2 ron paul maine
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.