Asian Indices Mostly Higher; European Markets Disappointed By Fall In German Factory Orders

Asian Indices Mostly Higher; European Markets Disappointed By Fall In German Factory Orders

Asian equities closed on a positive note as an assurance from the Chinese leaders alongside an upward trajectory in oil prices helped the indices in the region to maintain their momentum. China’s Shanghai SE Composite Index rose after the country’s Prime Minister Li Keqiang revealed a new five-year economic plan that aims to attain an average growth of 6.5 to 7%. The index closed the day 0.81% higher at 2,897.34.

Japan experiences profit-booking

On the other hand, profit booking by investors after a four-day rally in Japanese equities alongside a gain in yen sent the country’s Nikkei 225 down by 0.61% to 16,911.32. Hang Seng too dipped 17 points to 20,159.72. Taiwan’s TSEC 50 Index managed to rally 0.19% to 8,659.55 during the day. India’s Mumbai Sensex remained closed for the day on account of Mahashivratri.

In European markets, nearly all of the major indices opened the day on a gloomy note after Germany reported a fall in its factory orders for the previous month. The industry orders in Germany dipped 0.1% month-on-month, extending its 0.2% fall in December. Sluggish domestic demand was seen as a major contributor to this fall, according to reports.

German factory orders drop

The uninspiring data pushed the European indices lower as FTSE 100 was trading 29.25 points down at 6,170.18. Euronext 100 was seen trading 0.48% down at 865.45 while CAC 40 fell 0.40% to 4,439.01. DAX dipped 0.70% to 9,755.10 and Swiss Market Index opened lower by 0.25% to 7,962.56.

During the last day of the previous week, the U.S. markets succeeded in wiping out most of the 2016 losses as bullish view took over the market. The mixed U.S. jobs data left a positive impression on the overall market sentiment. Resultantly, Dow Jones Industrial Average added 62.87 points to 17,006.77 while S&P 500 Index inched up by 0.33% to 1,999.99. If market analysts’ are to be believed, then the rebound in the markets is likely to sustain.