Thu, 01 Oct 2020

Asian stocks advance, U.S. dollar flexes muscles

Lola Evans
30 Jun 2020, 19:20 GMT+10

SYDNEY, Australia - Stocks in Asia followed the overnight lead from Europe and Wall Street, posting strong gains.

An official survey on China's vast factory sector revealed an uptick in activity in May, whereas a retreat was expected.

"The divergence of the domestic recovery and foreign orders contraction highlights that the Chinese economy remains affected by the global situation for the Covid-19 pandemic," ING analysts said in a note.

"As new infection cases globally continue to grow, we believe that China will continue to face a contraction in export orders in the coming months," the ING note said.

There was little hesitation among buyers as the Nikkei 225 in Japan jumped 293.10 points or 1.33% to close Tuesday at 22,288.14.

The Australian All Ordinaries rose 85.70 points or 1.45% to 6,001.30.

In Hong Kong, the Hang Seng advanced 125.91 points or 0.52% to 24,427.19.

China's Shanghai Composite added 23.16 points or 0.52% to 24,427.19.

The U.S. dollar was in demand crushing the major currencies in their wake. The euro sank to 1.1219. The British pound was sharply lower at 1.2273. The Japanese yen fell to 107.66, while the Swiss franc was a fraction lower at 0.9518.

The Canadian dollar weakened to 1.3685. The Australian dollar fell to 0.6848, while the New Zealand dollar eased to 0.5400.

Overnight on Wall Street, the Dow Jones Industrial Average was ahead 580.25 points, or 2.32%, at 25,595.80.

The Standard and Poor's 500 rose 44.19 points, or 1.47%, to 3,053.24.

The Nasdaq Composite gained 116.93 points, or 1.20%, to 9,874.15.

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