Asian markets open higher after Wall Street rebound

Strong earnings reports from firms such as Goldman Sachs, Morgan Stanley and Johnson & Johnson, helped prop up US markets and create the ripple effect to a bullish morning for Asian markets.


Asian markets opened higher on Wednesday after robust corporate earnings on Wall Street revived optimism all round and gave hope to investors.

Japan’s benchmark Nikkei 225 gained 1.03%, while Singapore’s Straits Times Index increased by 1.61%, and Malaysia’s FTSE Bursa Malaysia Kuala Lumpur Composite Index edged up 0.27%.

Over at China, stocks reversed from recession with the Shanghai Composite Index up 1.02%, and the Shenzhen Composite Index gaining 1.04%. The Hong Kong market is closed for a public holiday.

Upbeat earnings from blue-chip firms in the United States drove Wall Street stocks higher. The Dow Jones Industrial Average ended its session up 2.2% or about 550 points, at 25,798.42 points. Broad-based S&P 500 was also up 2.2%, while the tech-focused Nasdaq gained 2.9%.

The reporting season which has just started, saw robust earnings from US companies such as Morgan Stanley, Goldman Sachs, Johnson & Johnson and UnitedHealth Group winning 5.8%, 3%, 2%, and 4.6%, respectively, for the day’s session.

Software giant Adobe gained 9.5% after its revenue targets exceeded analyst expectations.

The earlier selloff days ago that saw markets bleed was triggered by worries on trade war between the US and China, a rising interest rates landscape, and downgrades from the International Monetary Fund on weaker global economic growth outlook for this year and next year.

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