Asia-Pacific Markets, Europe Futures and Oil All Rally on US Relief

Kristian Rouz — Trading in stocks in most Asia-Pacific markets was in the green on Thursday, with equities gaining momentum on the previous day's massive rally in New York. European equity futures edged up on the North American optimism as well, while both crude oil and mainland China's currency gained as fears of a global meltdown ease. The yen dropped, supporting the Japanese exporters, and the overall optimism buoyed industrial metals prices.

MSCI's index of Asia-Pacific shares outside Japan rose 1.8%, rebounding from its three-year lowest posted earlier this week. In mainland China, stock markets were also up, however, most indices rolled off their midday highs by the close. The CSI 300 Index of biggest firms listed in Shanghai and Shenzhen rose 5.95%, while the benchmark Shanghai Composite Index added 5.34%. Both indices dropped over 20% during the past week.

In Japan, the Nikkei 225 Index rose 1.08%, while the broader Topix Index added 1.48%, helped by a weaker yen, at 119.92 per dollar compared to this week's seven-month lowest at 116.15 yer per dollar. Exporters cheered as a US optimism is promising greater demand for the Japanese goods. In turn, the rebound in Japan and China drove demand for oil and metals.

In Hong Kong, the Hang Seng China Enterprises Index rose 3.4%, while in Australia, the S&P/ASX 200 Index rose 1.3%, as demand for commodities intensified.

US crude futures jumped 2.2% to $39.45/bbl overnight, while in London the Brent benchmark is trading at $44.11/bbl, 2.3% higher the previous day's close. Copper, the industrial metals' benchmark, also rose 0.9% to $4,979.50/to on the signs of global relief.

In Europe, futures contracts advanced, suggesting a rally in Frankfurt and London, also likely preparing New York for another day of gains. Futures on the Euro Stoxx 50 Index due September rose 1.4% by the early morning.

European equities have so far wiped out their multi-month gains due to the global turmoil. The Euro Stoxx 600 is now 15% below its April highest as this week saw the most dramatic since 2008 selloff in European shares. Many investors, however, kept buying select European equities, enjoying support from the expanding German economy. But an alarming signal, a first in about a month capital outflow from the region's two biggest exchange-traded funds occurred his week as well.

Global gold prices, although higher somewhat, are still way below their multi-year peaks, suggesting international investors have not lost their faith in financial instruments. Spot gold rose 0.2% to $1,127/oz.