Investing.com - Most Asian bourses rallied Monday on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
In Asian trading Monday, Japan’s Nikkei 225 rose 0.12% in what was one of the region’s more lethargic performances. Upside for Japanese shares was capped because the dollar sank against its major rivals, including the Japanese yen.
Hong Kong’s Hang Seng jumped 1.17% while the Shanghai Composite lost 0.24%. Noted technical analyst Tom DeMark said the Shanghai Composite could experience a near-term correction before heading higher. DeMark said the Shanghai gauge will meet some resistance between 2,313 and 2,348 before rising again, Bloomberg reported.
Australia's S&P/ASX 200 jumped 0.7% on the Summers headlines while New Zealand’s NZSE 50 added 0.77%. National Australia Bank said that Federal Reserve Vice Chairwoman Janet Yellen is the preferred choice of market participants as the next leader of the Fed. Chairman Ben Bernanke’s term expires next year.
Part of the reason Summers reportedly withdrew from consideration is that he did not believe the U.S. Senate would confirm him. Recently, a group of 20 senators sent a letter to Obama endorsing Yellen. Prior to that, 350 economists did the same.
The Summers news helped take traders’ minds off the looming Fed meeting that kicks-off Wednesday. It is widely expected that some tapering announcement, likely USD10 billion a month, will come to pass.
A majority of market observers do not expect a formal tapering announcement to roil global markets because tapering has been speculated on for so long that it should be priced into stocks and other risk assets.
South Korea’s Kospi added 0.56% while Singapore’s Straits Times Index surged 1.53%. S&P 500 futures soared 1.07% after U.S. stocks wrapped up their best week since January last week.
In Asian trading Monday, Japan’s Nikkei 225 rose 0.12% in what was one of the region’s more lethargic performances. Upside for Japanese shares was capped because the dollar sank against its major rivals, including the Japanese yen.
Hong Kong’s Hang Seng jumped 1.17% while the Shanghai Composite lost 0.24%. Noted technical analyst Tom DeMark said the Shanghai Composite could experience a near-term correction before heading higher. DeMark said the Shanghai gauge will meet some resistance between 2,313 and 2,348 before rising again, Bloomberg reported.
Australia's S&P/ASX 200 jumped 0.7% on the Summers headlines while New Zealand’s NZSE 50 added 0.77%. National Australia Bank said that Federal Reserve Vice Chairwoman Janet Yellen is the preferred choice of market participants as the next leader of the Fed. Chairman Ben Bernanke’s term expires next year.
Part of the reason Summers reportedly withdrew from consideration is that he did not believe the U.S. Senate would confirm him. Recently, a group of 20 senators sent a letter to Obama endorsing Yellen. Prior to that, 350 economists did the same.
The Summers news helped take traders’ minds off the looming Fed meeting that kicks-off Wednesday. It is widely expected that some tapering announcement, likely USD10 billion a month, will come to pass.
A majority of market observers do not expect a formal tapering announcement to roil global markets because tapering has been speculated on for so long that it should be priced into stocks and other risk assets.
South Korea’s Kospi added 0.56% while Singapore’s Straits Times Index surged 1.53%. S&P 500 futures soared 1.07% after U.S. stocks wrapped up their best week since January last week.