HONG KONG- Asian shares rallied on Thursday after blockbuster results from tech darling Nvidia boosted Wall Street and a retreat in US bond yields eased pressure on borrowing costs globally.
A round of soft manufacturing surveys had also revived hopes central banks were done tightening, though that might change depending on what clues about interest rates Federal Reserve Chairman Jerome Powell gives at an annual central bank summit in Jackson Hole, Wyoming, on Friday.
“Equities rallied and bond yields retreated as flash PMI data for August signaled weaker economic activity in the U.S., euro area and UK, fueling market expectations that central banks may not have to raise rates again,” said analysts at ANZ in a note.
“This week’s Jackson Hole Symposium remains firmly in focus for markets … We expect (Powell) will err on the side of caution with respect to inflation, noting some signs of improvement but still with a long way to go.”
European markets were set for a higher open, with pan-region Euro Stoxx 50 futures up 1.7 percent , German DAX futures rising 0.6 percent and FTSE futures adding 0.5 percent .
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.7 percent , also lifted by Nvidia’s bullish outlook.
The index is however down 8.1 percent so far this month due to the weakness in China’s economy and yuan, as well as some gloomy factory readings from Japan, which also left sentiment fragile.
US stock futures, the S&P 500 e-minis rose 0.77 percent .
Australian shares edged up 0.63 percent , while Japan’s Nikkei stock index rose 0.81 percent , in a fourth straight session of gains on Thursday, the longest streak since mid-June.
