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Asia Pacific stock markets continue recovery after Dow bounces back - live Asia Pacific stock markets continue recovery after Dow bounces back - live
(34 minutes later)
11.08am AEST02:08
What he really means is, will China’s chart go more like Thunderbirds 3 or Thunderbirds 4, the one that went underwater?
We’ll find out when trading starts at 11.30am Sydney time, ie in about 22 minutes.
11.03am AEST02:03
But with Wall Street back on song and the Asia pacific markets up again today, what can possibly can wrong?
Well, investors are still not convinced about what’s going to happen in China where the weak stock market is seen as being important more because it suggests all is not well with the wider economy, rather than as the root of any systemic problem.
Reuters says a “fresh slide in China’s equities [on Thursday] and worries that China may allow a further depreciation of the yuan risked hampering a recovery in other riskier assets in Asia and beyond”.
It quotes Jasper Lawler, market analyst at CMC Markets:
Rather than getting ahead of the game with a well thought out plan for stabilising the economy, the PBOC appears to be reluctantly easing policy any time there’s a drop in share prices.
The net effect is that markets clamour for more stimulus while at the same time losing faith it will actually work.
10.53am AEST01:53
It was too late for European bourses though which had struggled on the back of another lacklustre response from the Chinese markets to yet more stimulus – rate cuts and a loosening of reserve requirements – from the People’s Bank of China on Tuesday.
The FTSE was down 102 points to 5,979 on Wednesday. It has now fallen for 11 of the last 12 days (on Tuesday it jumped by 188 points), and is currently 15% off its record high.
Germany’s DAX and Spain’s IBEX both lost 1.3%, and the French CAC dropped 1.4%.
10.49am AEST01:49
The key plus-point for the American market seemed to be comments from New York Fed president Bill Dudley who said on Wednesday that a September interest rate rise was now “less compelling” than it had been just a few weeks ago.
The decision to begin the normalisation process at the September FOMC [federal open market committee] meeting seems less compelling to me than it was a few weeks ago
He was also keen to play down any systemic risk from the China turbulence.
The stock market has to move a lot – and stay there – to have implications for the US economy. What we’re seeing is not a US problem. This is very different from the financial crisis.”
And with the prospect of more cheap money sloshing around the system for a bit longer than everyone had begin to expect, traders went away happy and the market surged.
Updated at 11.01am AEST
10.42am AEST01:4210.42am AEST01:42
The ASX200 in Australia is up smartly again this morning after a good day on Wednesday saw it recoup a lot of the losses from earlier in the week, rising 35.5 points, or 0.69%, at 5,172.8 points.The ASX200 in Australia is up smartly again this morning after a good day on Wednesday saw it recoup a lot of the losses from earlier in the week, rising 35.5 points, or 0.69%, at 5,172.8 points.
This is this morning’s chart, where it resembles roughly half of Thunderbirds 3.This is this morning’s chart, where it resembles roughly half of Thunderbirds 3.
10.34am AEST01:3410.34am AEST01:34
Good morningGood morning
Welcome to the Asia leg of the markets live blog. We’ve all had time to pause and reflect in the time zone but now things are under way again and the Australian and Japanese markets are up strongly following a huge 619-point surge on Wall Street on Wednesday.Welcome to the Asia leg of the markets live blog. We’ve all had time to pause and reflect in the time zone but now things are under way again and the Australian and Japanese markets are up strongly following a huge 619-point surge on Wall Street on Wednesday.
For full details of how it played out yesterday, here’s the blog.For full details of how it played out yesterday, here’s the blog.
More of that in a moment – especially some interesting comments from a Federal Reserve rates setter – but here are the main scores on the doors this morning.More of that in a moment – especially some interesting comments from a Federal Reserve rates setter – but here are the main scores on the doors this morning.
Nikkei +1.4%Nikkei +1.4%
ASX200 +1.3%ASX200 +1.3%
Kospi +0.56%Kospi +0.56%
The yen is also down on the dollar while the Aussie dollar is currently buying US71.24c.The yen is also down on the dollar while the Aussie dollar is currently buying US71.24c.
Updated at 10.37am AESTUpdated at 10.37am AEST