Nikkei Leads Recovery in Asia From Monthly Lows

Nikkei Leads Recovery in Asia From Monthly Lows

16 May 2016, 05:11
Roberto Jacobs

Nikkei Leads Recovery in Asia From Monthly Lows

The stocks on the Asian bourses set-off the week on the weaker note, tracking a softer close on the Wall Street last Friday and weekend’s poor Chinese dataflow, which weighed down on the risk sentiment.

Although over the last hour, most major Asian markets, barring China, have taken on the recovery mode, with Japan’s lead from the front, after reports hit the wires that Japan’s PM Abe may put-off sales-tax hike, while he backed the case for more fiscal stimulus in a bid to spur demand. However, Japan chief cabinet secretary Suga’s quickly dismissed PM Abe sales tax hike delay comments published earlier today by the Japanese media.

Further, markets appear to move past poor Chinese data dump as higher oil prices combined yen’s relative weakness continue to keep the sentiment buoyed.

Nikkei consolidates the upside on sales tax delay news

Meanwhile, the Japanese benchmark index, the Nikkei 225 rallies +1.04% to 16,583 points, as the USD/JPY pair rises 0.26% to test 109 handle amid improving risk appetite. Australia’s ASX 200 index advances 0.66% to 5,364 points.

While the Chinese equities trade largely mixed, with the benchmark Shanghai Composite index dropping -0.27% to 2,820, the CSI300 index slips -0.17%, while Kong’s Hang Seng jumps +1.18%.


Share it with friends: