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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.

IG Analyst

Publication date : 2018-10-17T04:21:06+0100

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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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