- Steadying China markets, oil rebound, US data underpin stocks
- China bank shares up 2.5 percent after lending data
- Oil prices gain on speculation of an eventual deal to tackle a deep supply glut
- Gold extends fall from Thursday’s one-year peak as safe haven buying rolled back
Asian shares extended their gains on Tuesday as a combination of stabilising Chinese markets, a rebound in oil prices and solid US consumption data drove investors to look for bargains after last week’s rout.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.6 percent, with Chinese bank shares leading the gains after a surprise jump in China’s bank lending data.
Mainland Chinese shares also rose 2.5 percent to three-week highs.
Japan’s Nikkei rose 0.9 percent after a 7.2 percent climb on Monday, recovering a sizable part of its 11 percent slump last week - its biggest since 2008.
On Monday, European stocks rose 2.9 percent, having shed nearly 10 percent over the last two weeks. US financial markets were closed for a national holiday but globally-traded US stock futures rose 1.5 percent.
It is partly a reaction after such big falls last week. Solid US data is also improving investor sentiment given that they are counting on US growth to lead the global economy.Hirokazu Kabeya, Chief Global Strategist, Daiwa Securities
US retail sales data published on Friday showing firm growth allayed fears – at least for now – that the US economy could be dragged into recession as growth stumbles in many parts of the world.
Sentiment on the US currency also improved, with the dollar rising to 114.65 yen, recovering further from a 15-month low of 110.985 touched on Thursday.
Gold extended fall from Thursday’s one-year peak of $1,262.90 per ounce as safe-haven buying in the precious metal in recent weeks was rolled back.
It fell 0.6 percent to $1,203.90, unable to find a floor after 2.2 percent on Monday, which was its biggest fall in almost seven months.
Oil prices gained on news of a rare private meeting of top officials from the world’s biggest oil producers spurred speculation of an eventual deal to tackle a deep supply glut.
Global benchmark Brent futures rose 3.3 percent to $34.48 a barrel, rising to their highest level in a week. US crude futures also jumped back above $30.
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