Asian Stocks Climb Higher, US Dollar Drops As US Data Brighten Mood

US DOLLAR
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On Thursday, The Asian stock markets follow the wall street high with the investors returning to buy tech stocks, selling dollars and buying gold after the established virus numbers and unexpected rise in USA inflation boosted sentiment.

The MSCI broadest index for the Asia-pacific shares from japan rose 0.2% and gains in the semiconductor producers pushed Nikkei 225 higher to their 6 months high.

The surge comes after the tech rally left the S&P 500 index in a whisker of the record closing higher overnight, in the climate where even the worst news is somehow considered to be good news if it improves the opportunity of extra stimulus to the aid recovery.

The rising costs of fuel lifted the US consumer prices by 0.6% in July as compared to the 0.3% expectation, leaving the core inflation to stand at 1.6% for 2020 to July.

On the other hand, the exact number of daily new coronavirus cases in the US seems to be getting stable at about 55,000, with the S&P futures trading flat as US Dollar Index Fails to Surge Above 94.00 Despite Positive CPI Data.

The bond market held steady after a large auction and the generally upbeat mood pushed selling overnight, with the 10-year U.S benchmark yielding 0.6622%.

The softer dollars assisted the gold to surge steadily, adding about 1% to the previous $1,937 per ounce after it whipsawed within $1,900 overnight.

Australia was an outlier in the region’s equity with the sale of Telstra, a communications giant after the profit rise dragging on the trade index.

The markets are awaiting the breakthrough in wrangling over the US aid package, despite the current signs of slow progress and the important weekend meeting between the Chinese and US trade officials.

DOLLAR SLIPS

Apart from gains in Wall Street, the broader mood has investors turning this blowtorch back on the USD.

This was largely steadied in august after the 4% drop in July against its currency counterparts, but on Thursday, it was trading under pressure as the cautious notion from the federal reserve lawmakers overnight further reinforced expectations for lower rates.

The US Dollar was previously 0.2% weak on the euro trading at $1.1896 whereas the sterling pound crept off the one week low after the diabolical growth figures.

On the other hand, the Aussie dollar rose briefly after the data showed better than anticipated hiring in July, although this was not sufficient to stave off the rise in joblessness to the 2-decade high the currency that was settled to steady at about $0.7168.

Lenovo Profit Surpass Analysts Expectations, Helped by Work From Home Trends

China’s Lenovo Company, China’s most popular PC/Laptop maker, posted better than anticipated quarterly profits and said it is because they were capturing the opportunities coming from remote learning and working.

Lenovo reported a whopping 31% jump in profits for the 1st quarter that ended on 30th June to $213 million. This beat the average trading at $107.48 million estimates of 5 analysts.

With regard to commodities, the oil prices clung on the solid gains from overnight after the drop in the US crude inventories brought hope that the demand for the oil is recovery.

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