World shares gain after technology-powered rally on Wall Street

Elaine Kurtenbach

AP – Shares were mostly higher in Europe and Asia yesterday after technology companies powered the biggest rally on Wall Street since March.

Investors have been encouraged by strong earnings reports, as every S&P 500 company that has reported earnings this week has beaten forecasts.

“Overall, it is safe to say that the United States (US) equity market is fully in a risk-on mode and traders aren’t afraid in backing riskier assets,” Naeem Aslam of Avatrade said in a commentary.

Inflation remains a key concern, and an update on how higher prices may be affecting consumer spending when the Commerce Department releases retail sales for September will be brought up soon.

Germany’s DAX edged 0.2 per cent higher to 15,493.34 and the CAC 40 in Paris climbed 0.4 per cent to 6,712.55. Britain’s FTSE 100 added 0.2 per cent to 7,224.41.

The future for the S&P 500 was 0.3 per cent higher while the contract for the Dow industrials gained 0.4 per cent.

Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea. PHOTO: AP

In Asian trading, Tokyo’s Nikkei 225 added 1.8 per cent to 29,068.63 and the Hang Seng climbed 1.5 per cent to 25,330.96. In Seoul, the Kospi advanced 0.9 per cent to 3,015.06.

Taiwan shares jumped 2.4 per cent on news that computer chip maker Taiwan Semiconductor Manufacturing Corp (TSMC) had upgraded its profit outlook. TSMC, the world’s biggest chip maker, climbed 4.7 per cent after its CEO confirmed reports it plans to open a semiconductor fabrication plant in Japan. The Shanghai Composite index picked up 0.4 per cent to 3,572.37.

China will report its last quarter growth on Monday in another indicator of how the recovery from the pandemic downturn is progressing. The S&P/ASX 500 in Australia gained 0.7 per cent to 7,362.00. India’s markets were closed for a holiday.

On Thursday, a wave of buying gained momentum from a day earlier, when Wall Street broke a three-day losing streak.

The S&P 500 surged 1.8 per cent. The Dow Jones Industrial Average rose 1.6 per cent and the tech-heavy Nasdaq climbed 1.7 per cent. Small company stocks also notched gains. The Russell 2000 index rose 1.4 per cent, to 2,274.18. Businesses are still facing pressure from rising costs.

The Labour Department said inflation at the wholesale level rose 8.6 per cent in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010. Bond yields held steady. The yield on the 10-year Treasury edged up to 1.54 per cent from 1.53 per cent late Thursday.

In other trading yesterday, US benchmark crude oil topped USD82 per barrel, gaining 72 cents to USD82.03 per barrel in electronic trading on the New York Mercantile Exchange. It surged 87 cents to USD81.31 per barrel on Thursday.

Brent crude, the standard for international pricing, added 83 cents to USD84.83 per barrel.

The US dollar strengthened to JPY114.27 from JPY113.67 late Thursday. The euro rose to USD1.1606 from USD1.1596.