Global stock indices rose during trading today, and US stocks rose on Wall Street, supported by the decline in bond yields. European stocks also increased in the beginning of trading, led by the technology sector. The Tokyo Stock Exchange kept pace with the upward trend, and the Nikkei index rose, recording the highest level in about 3 months.
Wall Street’s main indices opened higher, as the week-long rally in Treasury yields eased on fears that the Federal Reserve would keep interest rates high for a longer period.
The Dow Jones Industrial Average rose 72.76 points, or 0.22%, to 33,076.33 points. The Standard & Poor’s 500 index opened up 16.67 points, or 0.42%, to 3,998.02 points. The Nasdaq Composite Index increased by 61.67 points, or 0.54%, to 11,524.65 points.
Risk appetite
European stocks opened higher, supported by the rise of interest-sensitive technology stocks, as investors flocked to riskier assets after comments from a Federal Reserve official that the US central bank may temporarily stop tightening monetary policy.
The Stoxx 600 index of European shares rose 0.5% in early trading, with the sub-index for the technology sector rising 1.3%.
Investor sentiment was boosted last night after Rafael Bostic, president of the Federal Reserve Bank of Atlanta, said he favored raising interest rates “slow and steady” in the next phase and stopped raising them by the middle or late summer.
The mining sector index rose 1.3%, amid expectations that the lifting of restrictions related to Corona in China would lead to an increase in demand, after data showed improvement in economic conditions in the country.
Lufthansa shares jumped 4.4% after the German airline turned profitable in 2022, supported by a strong rise in demand for air travel.
Japanese gains
Japan’s Nikkei index closed at its highest level in nearly 3 months after US stocks ended higher overnight.
The index rose 1.56% to close at 27,927.47 points, its highest level since December 15, and the largest daily gain since January 18. The index rose 1.73% this week.
The broader Topix index increased 1.25% to 2019.52, bringing its gains to 1.57% this week.
“Japanese stocks’ gains are justified as they benefit from the recovery of the Chinese economy,” said Jun Morita, general manager of research at Chibajin Asset Management. The Japanese economy will also benefit from the arrival of Chinese tourists to Japan.
“But today’s gains may be very significant,” he added. Also, Wall Street was very strong last night. Perhaps there was too much optimism among investors about the prospects for a rate hike in the United States.”
