Tuesday’s strong rally on Wall Street was the signal for the rest of the world to push up markets in anticipation of a continued improvement in the US economy.
In Japan investors stimulated their nation’s benchmark to a point higher than it’s been in seven months, while oil floated just under $107 per barrel. The dollar also rose relative to both the yen and the euro.
Recently released government figures showed better retail sales, while the US Federal Reserve said that they are expecting unemployment in the US to decline; both bits of information helping to boost investors’ optimism about the US economy, which was in turn reflected in Tuesday’s good showing on Wall Street.
“Exports stocks, especially focusing on the U.S. market, will definitely benefit,” said Dickie Wong, executive director of Kingston Securities Ltd. in Hong Kong.
Two exceptions to the global upsurge of markets was in Hong Kong and mainland China, where share prices slipped a bit. Real estate developers in China showed the severest losses in response to the announcement by Chinese Premier Wen Jiabao that government reigning-in policies designed to slow down the skyrocketing cost of housing in China will remain in force.
“The losses are mainly due to decisions by authorities not meeting the earlier expectations of investors,” said Xu Xiaoyu, an analyst at China Investment Securities, based in Beijing.
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