Japan shares surge on upbeat signs from American economy
Japanese shares are dominating Asian markets now, following the likelihood of a steady US economic recovery.
The Nikkei Stock Average grew 0.7%, South Korean Kospi gained 0.1%. As for Taiwan’s stock market index, it closed +0.04%. The Shanghai Composite Index lost 0.2%.
Upbeat expectations for gradual US growth arose, when President James Bullard, the Fed’s Bank of St. Louis told the major bank is on the verge of raising interest rates. That’s an indisputable sign that American economy keeps evolving in the expected way.
Financial experts stress the fact that this year’s early sell-offs, that factored in American recession, faded away and a steady American economic recovery won’t generate anxiety regarding capital outflows from slowing Asian economies.
Undoubtedly, a gradual US recovery would be quite favorable for Asian stock markets. It’s because these markets are already priced in worse scenarios.
A US economic recovery and a strengthening greenback back up Japanese manufacturers, exporting goods worldwide.