Nikkei leads Asia higher as yen skids; commodities in demand - Business News, Finance News, Share Market News - Market trendz

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Thursday 4 April 2024

Nikkei leads Asia higher as yen skids; commodities in demand


Asian shares rallied on Thursday as U.S. rate cuts remained on the menu, even if their timing was unclear, while the yen slid against everything except the dollar and boosted Japanese stocks.


There was also action in commodities as gold reached another record, oil a five-month peak and copper a 13-month top, helping lift shares in basic materials and energy companies.


Some of these gains were due to supply disruptions and geopolitical tensions, but they also reflect optimism about global growth given a recovery in recent factory surveys (PMI), particularly for China.


"Steady improvement in manufacturing surveys throughout last quarter point to momentum improving broadly in the coming months," wrote analysts at JPMorgan in a note.

"The global manufacturing output PMI moved further into expansionary territory in March, reflecting largely positive results across the major economies," they added. "Global business confidence is on the mend."

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.4%, though a holiday in China made for thinner trading conditions.


Tokyo's Nikkei bounced 1.5% as the yen fell, with the materials, industrials, and energy sectors leading the way.


EUROSTOXX 50 futures and FTSE futures were little changed in early trade. S&P 500 futures rose 0.2% and Nasdaq futures 0.3%.


Sentiment was aided by a reaffirmation from Federal Reserve Chair Jerome Powell that U.S. rates were still on course to be cut this year, though the timing was data dependent.


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