Asian stocks rebounded sharply on Thursday after weeks of uncertainty as Wall Street helped sooth investors’ edgy nerves. Global markets showed signs of regaining their footing after an extended rout fueled by growth concerns.
All of this would not have been possible if a key Federal Reserve official had not hinted that, considering the recent market turmoil, a September rate increase by the US had become less likely.
TOKYO: Volatile global markets showed signs of a respite from the recent blood-letting on Tuesday, as bargain hunters helped Asian stocks off three-year lows hit on fears that China's economy was risking a hard landing, with Chinese shares losing another 5 per cent. The MSCI's broadest index of Asia-Pacific shares outside Japan jumped 1.7 per cent after an initial dip to three-year lows while Japan's Nikkei index also erased most of its early losses after an intial drop of 4.3 per cent. "There appears to be buyback as many markets look oversold after panicky selling in the last few days.
China’s manufacturing industry weakened for a fifth straight month, according to a preliminary measure for March released Monday, deepening concern the nation will miss its 7.5% growth target this year.
The Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics dropped to 48.1, compared with the 48.7 median estimate of 22 analysts surveyed by Bloomberg News and February’s final 48.5 figure. Numbers above 50 signal expansion.