Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Asian Stocks Up Over Fed, Biden Support, but Investors Search for Next Catalysts

Stock MarketsApr 28, 2021 10:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were up Thursday morning as inventors digested both U.S. President Joe Biden’s address to a joint session of Congress and the Federal Reserve’s latest policy decision.

South Korea’s KOSPI gained 0.55% by 10:31 PM ET (2:31 AM GMT), even as Samsung Electronics (OTC:SSNLF) Co. Ltd.'s (KS:005930) profit for the first quarter of 2021 topped forecasts. The company reported a 46% rise in first-quarter profit thanks to strong demand for smartphones and TVs even as a drop in chip earnings after a cut in U.S. output increased production costs. Operating profit also rose to KRW9.4 trillion won ($8.44 billion) for the quarter ended March 2021, up from 2020’s KRW6.45 trillion.

In Australia, the ASX 200 was up 0.40%.

Hong Kong’s Hang Seng Index jumped 1.11%. China’s Shanghai Composite edged up 0.14% and the Shenzhen Component was up 0.32%.

Japanese markets are closed for a holiday.

U.S. shares ended the previous session on a high note overall thanks to strong earnings from technology heavyweights. Nasdaq 100 futures outperformed after Apple Inc. (NASDAQ:AAPL) more than exceeded revenue estimates and Facebook Inc . (NASDAQ:FB) reported gains in sales and users.

The Fed kept its interest rate unchanged at 0.25% as it handed down its decision on Wednesday but did not offer any fresh clues as to the future direction of its monetary policy. Fed Chairman Jerome Powell also reiterated that the Fed would not trim asset purchases, currently at a monthly level of $120 billion, anytime soon.

However, some investors remained skeptical.

“You are seeing markets pricing in Fed rate hikes even though the Fed is signaling they don’t think they need to take action through 2023,” Natwest Markets chief U.S. economist and co-head of global economics Michelle Girard told Bloomberg.

The central bank’s view that inflation pressures are likely “transitory” did give U.S. Treasuries a boost during the previous session. However, strong corporate earnings are not enough to sustain the bullish momentum in global stocks and investors are already searching for the next catalysts.

The focus shifted to Biden’s address, his first in his role as president, which he started by declaring that the U.S. is “on the move again.” He also pushed for a new spending and tax-credit package, which together with an earlier infrastructure and jobs plan will cost the country around $4 trillion, but is a “once-in-a-generation investment.”

The Fed’s continued dovish stance and the prospect of more U.S. stimulus have raised investor’s expectations for both inflation and interest rates.

“We are looking at an economy that with the help of vaccinations is gathering momentum and yet we are continuing to see on the monetary and fiscal front the amount of support is ongoing,” said Natwest’s Girard.

Investors will also look to the U.S. GDP for the first quarter of 2021, which will be released on Friday, for further clues about the U.S. economic recovery from COVID-19.

Asian Stocks Up Over Fed, Biden Support, but Investors Search for Next Catalysts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Sabine Rihet
Sabine Rihet Apr 29, 2021 5:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Joe has lost reason.
Ryan Miskowiec
Ryan Miskowiec Apr 29, 2021 5:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
One cannot lose that which they never had
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email