Asian stocks advance as S&P 500 closes above 5,500: Markets wrap
interest-rate cuts after Jerome Powell cited signals that the US is back on a disinflationary path.
Equity benchmarks climbed in Japan, Australia and South Korea, while futures for Hong Kong stocks pointed to a positive start. Contracts for the S&P 500 edged lower after the benchmark closed above 5,500 for the first time — the gauge’s 32nd record this year — to extend a blistering rally that has left analysts scrambling to update their targets. Tesla Inc. surged 10% to lead gains in megacaps, helping the Nasdaq 100 close above the 20,000 mark for the first time.
The new all-time high close in the S&P 500 and Nasdaq “could also be taken as another win given the psychological significance that ‘round numbers’ hold,” said Chris Weston, head of research at Pepperstone Group in Melbourne. “Asia too will take some inspiration, not just from the net change in US markets, but because it wasn’t just tech that has propped up the respective indices, and we’ve seen somewhat better breadth and participation.”
In other markets, oil climbed to trade near a two-month high, while the Bloomberg Dollar Spot Index was little changed. Treasury yields were steady after dropping Tuesday for the first time in three sessions.
In Asia, traders will be looking for signs of improvement in China’s beleaguered housing market after China Vanke Co.’s sales stalled and Country Garden Holdings Co.’s slumped further last month.
Meanwhile, the central bank’s plan to borrow bonds may slow, according to analysts. The People’s Bank of China has
