Better-than-expected earnings reported by some of the major U.S. companies along with improved sentiment kept Asian markets relatively calm today. The only exception was China’s Shanghai Composite Index, which reversed from steep losses of 4% to finish the day only slightly lower.
Shanghai extends losses
The Shanghai Composite Index fell 0.52% or 14.23 to 2,735.56. Today marks the second consecutive day of losses for the index as concerns of capital outflows from the region are firming up. According to analysts and market participants, Beijing is now focusing on the yuan’s stability rather than driving up stock markets.
In the rest of Asia, Hong Kong’s Hang Seng rose 1.02% or 191.65 to 19,052.45. Japan’s Nikkei 25 closed 2.72% higher to to 17.163.92. Up ahead in the week, investors will be paying attention to the monetary easing stance of the Bank of Japan, which kept rates unchanged at its last meeting.
Europe trading lower
In Europe, major indices were trading mildly lower during the late Asian hours. Oil prices seem to be dictating the movement of European markets as U.S. Oil Futures are back in $30 per barrel range. Crude Brent has also shed gains and is trading around the $31 level. Both the FTSE 100 and DAX are down by 0.39% and Euronext 100 was trading 0.27% lower at 856.58 today.
After a mixed reaction coming from Asian and European markets, it remains to be seen how U.S. markets will open today, considering extreme volatility this week so far. A rally in oil prices and strong corporate earnings kept the momentum up in U.S. markets yesterday. The Dow Jones Industrial Average inched closed 1.8% higher at 16.167.23 while S&P 500 Index too surged 1.41% to 1,903.63.
Apple Inc. (NASDAQ:AAPL) dominated the headlines after reporting $18.4 billion in profits but witnessed sluggish iPhone sales growth.