TOKYO: Asian stocks mostly surged on Thursday, boosted up by positive monetary report from the U.S. and stability in oil value after sharp falls.
It was the second day of gains for stock markets this week after a torrid start to the year dominated by doubts about the strength of the global economy. Japan’s Nikkei 225 rose 1.7 percent to 17,167.76 and Hong Kong’s Hang Seng added 0.6 percent to 23,830.08. South Korea’s Kospi gained 1.1 percent to 1,903.81 and Australia’s S&P/ASX 200 rose 0.6 percent to 5,384.70.
Data offered more evidence the U.S. economy is on a steady footing. A report from ADP, the payroll processor, showed that businesses added 241,000 workers in December, an increase from the previous month. Minutes from the Federal Reserve’s last meeting reinforced expectations it won’t raise interest rates until the middle of the year or later.
Markets got a perverse boost from European data that showed consumer prices fell in December for the first time since 2009. That increases pressure on the European Central Bank to provide more stimulus for the region’s flagging economy in the form of quantitative monetary easing. Many analysts expect the bank to announce plans to buy government bonds later this month.
U.S. crude oil was higher after diving to near a six-year low earlier in the week. The plunge in oil prices the past three months has unnerved markets as it suggests weakness in the global economy. Part of the fall, however, is due to oversupply as producers maintain production levels to avoid losing market share. Benchmark U.S. crude was up 51 cents at $49.16 a barrel in electronic trading on the New York Mercantile Exchange. It rose 72 cents to close at $48.65 on Wednesday. Brent crude was up 28 cents at $51.43 on the ICE exchange in London.
