Asian stocks make cautious gains after patchy Wall St. rally


Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.

FILE PHOTO: A man stands on an overpass with an electronic board showing Shanghai and Shenzhen stoc

FILE PHOTO: A man stands on an overpass with an electronic board showing Shanghai and Shenzhen stock indexes, at the Lujiazui financial district in Shanghai, China January 6, 2021. REUTERS/Aly Song

NEW YORK: Asian stocks inched higher on Wednesday, as upbeat Wall Street earnings and optimism about a global recovery supported sentiment, although concerns about the sustainability of a recent risk rally are likely to cap gains.

The Australian S&P/ASX 200 Index was last up 0.5per cent and e-mini futures for the S&P 500 rose 0.14per cent. Japan’s Nikkei 225 slipped 0.31per cent.

Bitcoin, which gained 19.5per cent on Monday, was down 0.1per cent at US$46,354 as Asian trading got underway.

The cryptocurrency was headed toward US$50,000 on Tuesday, but paused at US$48,216.

The early action came as shares of Lyft Inc rose as much as 11per cent while Twitter Inc climbed 2per cent in aftermarket trading on their latest quarterly results.

The earnings follow a slowdown in the global market rally on Tuesday as investors reconsidered how much government stimulus spending, easy money from central banks and vaccinations will boost stocks, oil and inflation.

“Substantial inflation worries are potentially overblown,” Stephen Innes, chief global markets strategist at financial services firm Axi, wrote in a note to clients.

On Wall Street, major stock indexes closed little changed, though the tech-heavy Nasdaq Composite eked out a record high on a gain of 0.14per cent. The S&P 500 lost 0.11per cent and the Dow Jones Industrial Average lost 0.03per cent.

The S&P had climbed the previous six sessions and is up 5.3per cent for the month. All three indexes closed at records on Monday.

European shares also slipped, with the STOXX 600 index finishing 0.1per cent in the red. The index has gained nearly 4per cent this month.



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