Shares around the world started the week with a rally as Japan’s Nikkei 225 index closed above 30,000 for the first time since August 1990.
European markets closed sharply higher on Monday following progress in Asia. Shanghai and Hong Kong were closed for the lunar New Year. US markets remained closed Monday for President’s Day.
Optimism, which the US government will review on trillions of dollars to aid the economy and encouraging corporate revenue reports, has helped stocks grind higher this month along with hopes that the COVID-19 vaccine rollout will set the stage for stronger economic growth second half of this year.
Democrats have decided to use a legislative process that does not require Republican support to implement the $ 1.9 trillion package proposed by President Biden.
Germany’s DAX rose 0.4% to 14,109.48 and the CAC 40 in Paris rose 1.5% to 5,786.25. The UK’s FTSE 100 rose 2.5% to 6,756.11. US futures also rose 0.5% with the S&P 500 contract. The future of the Dow industrial rose 0.6%.
The strong purchase in Tokyo was driven by the news that the Japanese economy grew at almost 13% annual rate in the last quarter and by strong corporate revenue reports. It was the second straight quarter of growth after a decline drastically exacerbated by the pandemic.
The recovery should put the economy on track to recover to pre-pandemic levels next year, helped by a recovery in demand for exports in the US and other major trading partners, said Marcel Thieliant of Capital Economies in a report.
Japan recently reintroduced a state of emergency in Tokyo and several other prefectures to combat a resurgence of outbreaks. But sustained corporate investment and government spending are expected to help offset the impact on travel, restaurants and other sectors most affected.
The Nikkei 225 opened up 1.9% at 30,084.15. It was the highest level since August 1990, just as Japan’s bubble economy began to implode after peaking at almost 39,000 in 1989.
Other Asian markets also experienced strong gains. Kospi in Seoul rose 1.5% to 3,147.00 and India’s Sensex rose 1.1% to 54,102.41. In Australia, the S & P / ASX 200 rose 0.9% to 6,868.90.
Thailand’s SET benchmark index rose 0.9% after the government forecast that the economy will expand by 2.5% to 3.5% this year after pulling 6.1% in 2020 as the government restricted international travel and imposed other limits on anti-pandemic activities.
On Friday, technology companies led a late-afternoon rally on Wall Street that limited a week of wobbly trading, with the largest stock indices hitting record highs. Standard & Poor’s 500 rose 0.5% to 3,934.83 on Friday, a record high for the second day in a row. It was its second straight weekly win. The tech-heavy Nasdaq composite rose 0.5% to 14,095.47, also a record. The Dow Jones industrial average also set a new high, rising 0.1% to 31,458.40.
A majority of U.S. companies have now reported their most recent earnings round, and the results have been surprisingly good. About 75% of the companies in the S&P 500 have published results, which shows an overall growth of 2.8% according to FactSet. This is a sharp turnaround from the 13% that analysts had expected at the end of September.
In other trades, the US benchmark crude oil rose 75 cents to $ 60.22 per barrel. Barrel of electronic trading on the New York Mercantile Exchange. It advanced $ 1.23 on Friday. Brent crude, the international standard, received 84 cents at $ 63.27 per barrel. Barrel.
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