New York: The major Asian and US markets rebounded strongly on Tuesday, taking cues from the positive close on Wall Street overnight and a report showing that Chinese manufacturing activity contracting at a slower than expected rate, which set in a wave of bargain hunting.
The major European markets are all advancing strongly, with risk appetite getting a shot in the arm from economic data.
South Korea’s Kospi and the Taiwanese Weighted Average rose over 3 percent each, while Australia’s All Ordinaries settled the session up 2.14 percent. Meanwhile, Japan’s Nikkei 225 average remained above the unchanged throughout the session before closing near the highs of the session. The index added 104.88 points or 1.22 percent before closing at 8,733.
Stocks look set to extend their nervous gains on Tuesday, as traders savor some encouraging global economic data points and harbor hopes of a further stimulus announcement from the Federal Reserve. That said, fundamental issues remain intact, as evidenced by the results of an economic sentiment survey for Germany, showing a severe setback to economic sentiment in Europe’s largest economy.
Traders may also focus on the new home sales report to be released later in the day, although it isn’t expected to bring in much cheer.
The Dow futures are rising 125 points, the S&P 500 futures are adding 15.60 points and the Nasdaq 100 futures are moving up 27 points.
US stocks rebounded on Monday, primarily due to bargain hunting amid the oversold levels of the markets as traders hoped for further stimulus announcement from the Federal Reserve.