Asia shares rise; Nikkei ends up 1%, Shanghai adds 2.1% – CNBC
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Markets in Asia finished mostly higher, with major indexes in China, Japan and Australia leading gains, extending last week’s advance. But analysts weren’t confident of the rally’s longer term sustainability.
“Markets remain unsure of themselves. While the brief rally in risk assets early last week helped soothe sentiment a little, there remains much uncertainty about what will follow,” analysts at Citigroup said in a note Monday. “Many investors are fearful about the erosion of G3 central banks’ omnipotence amid signs that the global economy has lost momentum.”
Chinese markets lead the pack, with the main Shanghai composite advancing 67.71 points, or 2.37 percent, to 2,927.73, while the smaller Shenzhen composite gained 37.66 points, or 2 percent, to 1,888.18.
The Japanese benchmark index, the Nikkei 225, closed up 143.88 points, or 0.90 percent, at 16,111.05. The Japanese yen remained strong against the dollar, with the pair hovering around the 112-handle.The dollar-yen was at 112.86 by 2:49 p.m. HK/SIN time. That’s down from levels over 120 at the beginning of the month, shortly after the Bank of Japan announced its shift to a negative interest rate policy.
Down Under, the S&P/ASX 200 closed up 48.42 points, or 0.98 percent, at 5,001.22, with most sectors up in the green; the heavily weighted financial sector gained 0.92 percent.
The gains follow a volatile start to the year.
“Market volatility eased last week amid improved risk sentiment,” ANZ bank said in a note early Monday. “The principal drivers of the better mood were a rebound in oil (partly due to the agreement between Saudi Arabia and Russia) and positive U.S. data,” the bank said. Reports emerged late last week, citing Russia’s energy minister, on a possible output freeze deal by March 1.
“In addition, uncertainty over the renminbi was reduced somewhat after PBOC Governor Zhou indicated that there was no foundation to the view the renminbi was overvalued,” the bank said.
Asia shares rise; Nikkei ends up 1%, Shanghai adds 2.1% – CNBC}