AGL 24.40 Increased By ▲ 1.46 (6.36%)
AIRLINK 109.29 Decreased By ▼ -2.00 (-1.8%)
BOP 5.29 Increased By ▲ 0.04 (0.76%)
CNERGY 3.67 Decreased By ▼ -0.05 (-1.34%)
DCL 8.00 Increased By ▲ 0.01 (0.13%)
DFML 44.30 Increased By ▲ 4.03 (10.01%)
DGKC 88.80 Increased By ▲ 0.80 (0.91%)
FCCL 21.99 No Change ▼ 0.00 (0%)
FFBL 42.28 Increased By ▲ 0.08 (0.19%)
FFL 8.90 Increased By ▲ 0.35 (4.09%)
HUBC 151.70 Decreased By ▼ -1.59 (-1.04%)
HUMNL 10.35 Decreased By ▼ -0.10 (-0.96%)
KEL 4.45 Decreased By ▼ -0.05 (-1.11%)
KOSM 3.95 Increased By ▲ 0.10 (2.6%)
MLCF 36.60 Decreased By ▼ -0.20 (-0.54%)
NBP 49.16 Increased By ▲ 1.17 (2.44%)
OGDC 131.70 Decreased By ▼ -0.10 (-0.08%)
PAEL 26.31 Increased By ▲ 0.16 (0.61%)
PIBTL 6.07 Increased By ▲ 0.04 (0.66%)
PPL 115.45 Decreased By ▼ -0.05 (-0.04%)
PRL 22.67 Increased By ▲ 0.07 (0.31%)
PTC 12.50 Decreased By ▼ -0.08 (-0.64%)
SEARL 56.19 Increased By ▲ 0.50 (0.9%)
TELE 7.40 Increased By ▲ 0.20 (2.78%)
TOMCL 37.69 Increased By ▲ 0.69 (1.86%)
TPLP 8.34 Increased By ▲ 0.49 (6.24%)
TREET 15.33 Increased By ▲ 0.03 (0.2%)
TRG 59.96 Increased By ▲ 5.41 (9.92%)
UNITY 32.34 Increased By ▲ 0.48 (1.51%)
WTL 1.18 Increased By ▲ 0.01 (0.85%)
BR100 8,406 Increased By 61.8 (0.74%)
BR30 26,453 Increased By 106 (0.4%)
KSE100 79,397 Increased By 409.9 (0.52%)
KSE30 25,518 Increased By 153.1 (0.6%)
Markets

World shares at record high as investors count on Fed largesse

  • Tokyo's Nikkei rallied as much as 1.3%, moving past the psychological barrier of 30,000 for the first time since April, also helped by a reshuffle in the Nikkei
Published September 7, 2021

TOKYO: Global stocks inched higher on Tuesday to a record high for the eight straight session as investors wagered the US Federal Reserve is likely to delay the start of tapering its asset purchases after the soft US jobs data.

Japanese shares extended their bull run on hopes the ruling Liberal Democratic Party will compile additional economic stimulus and easily win an upcoming general election after the country's unpopular Prime Minister Yoshihide Suga said he would quit.

Tokyo's Nikkei rallied as much as 1.3%, moving past the psychological barrier of 30,000 for the first time since April, also helped by a reshuffle in the Nikkei.

Stimulus hopes lift FTSE 100

Mainland Chinese shares were little changed in early trade while MSCI's ex-Japan Asian-Pacific index was down 0.1%.

The world's shares, measured by MSCI's gauge of 50 markets , tacked on 0.1% to log its eighth consecutive day of gains to record highs.

The latest rally, which started after Federal Reserve Chair Jerome Powell's dovish speech at Jackson Hole Symposium late last month, received a further boost from a surprisingly soft US payrolls report on Friday.

The US economy created 235,000 jobs in August, the fewest in seven months as hiring in the leisure and hospitality sector stalled, reducing expectations of an early tapering by the Fed.

That was way below economists' forecast of 728,000.

"It's the service sector that is losing steam and that clearly shows the impact of Delta variant. And the Fed has no reason to insist on tapering this year if the Delta variant is having an impact.

After all its policy moves are contingent on job recovery," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

US S&P 500 futures were 0.1% higher from Friday's close after the US holiday on Monday. Bond prices eased slightly, pushing up their yields, with the 10-year US Treasuries yielding 1.339%, up 1.3 basis points.

In the currency market, the euro changed hands at $1.1884 , a tad below Friday's one-month peak of $1.1909 while the yen was little moved at 109.76 yen to the dollar.

The Australian dollar fetched $0.7455, not far from its 1-1/2-month high of $0.74775 set on Friday.

The immediate focus is on the Reserve Bank of Australia's policy meeting later in the day and on whether it will stick to its plan to start tapering its bond purchase this month.

Oil prices fell after Saudi Arabia's sharp cuts to crude contract prices for Asia revived concerns over the demand outlook.

US crude futures dropped 0.6% to $68.90 per barrel.

Comments

Comments are closed.