Asian Shares Mostly Higher as US Stocks Add to Records

Strategic Insights -

The Asian stock market saw mostly positive returns on Wednesday, fueled by the US stocks' strong performance in the previous month. Japan's Nikkei 225 index was an exception, falling 1.2% despite the central bank's positive Tankan survey. Meanwhile, China's Shanghai Composite index rose 0.2% after the official manufacturing PMI rose to a three-month high. Hong Kong's market was closed, and South Korea's KOSPI index surged 1.5% after the government reported a bounce back in exports.

Key Takeaways:

  • The Shanghai Composite index rose 0.2% to 3,451.69 after the official manufacturing PMI rose to a three-month high of 49.7 in June.
  • South Korea's KOSPI Composite Index surged 1.5% to 3,117.17 after the government reported a bounce back in exports, driven by strong demand for semiconductors, ships, and health products.
  • Oracle's 4% rise was one of the strongest forces lifting the S&P 500, with CEO Safra Catz saying the tech giant is "off to a strong start" in its fiscal year.
  • GMS' stock jumped 11.7% after the supplier of specialty building products agreed to sell itself to a Home Depot subsidiary in a deal worth roughly $5.5 billion.
  • Hewlett Packard Enterprise and Juniper Networks rallied 11.1% and 8.4%, respectively, after saying they had reached an agreement with the US Department of Justice that could clear the way for their merger.
  • Bank stocks were solid, with JPMorgan Chase climbing 1% and Citigroup gaining 0.9%, after the Federal Reserve said they are financially strong enough to survive a downturn in the economy.

Statistics:

  • The S&P 500 rose 0.5% to 6,204.95, staging a stunning recovery from its springtime sell-off of roughly 20%.
  • The Dow Jones Industrial Average added 0.6% to 44,094.77.
  • The Nasdaq composite gained 0.5% to 20,369.73.
  • The U.S. dollar dipped to 143.86 Japanese yen from 144.04 yen.
  • The euro rose to $1.1792 from $1.1789.

Sources:

  • The Associated Press (AP Business Writer Stan Choe contributed)
  • Deutsche Bank (Parag Thatte and Binky Chadha)
  • ING Economics (Min Joo Kang)
  • Oracle
  • Home Depot
  • JPMorgan Chase
  • Citigroup
  • Federal Reserve
  • US Department of Justice