HONG KONG, Oct 19 (Reuters) - Asian shares bounced on
Tuesday, led by technology names across the region and as
Chinese markets clawed back ground lost after disappointing
economic data, while the improved investor confidence weighed on
the safe-haven dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan
rose 1.05%. It is up about 6% since its 12-month
low hit on Oct. 5, largely in line with a similar rally in world
shares following a strong opening to the U.S.
Futures also rose a little, suggesting a positive open to
the European session. Pan-region Euro Stoxx 50 futures
and FTSE futures both rose 0.13% while S&P 500 e-minis
Technology stocks were at the forefront of Tuesday's gains
in Asia, in line with moves in U.S. counterparts. The Hong Kong
benchmark rose 1.26% with the tech sub index
Japan's Nikkei gained 0.59, with technology investor
SoftBank Group leaping 3%.
Analysts said a Wall Street rally overnight which saw Apple
, Facebook and Microsoft all rising was
behind Asian tech share's strong day.
Chinese shares also rose, clawing back losses a day after
the country reported its weakest economic growth in a year.
Chinese blue chips were 1% higher and the Shanghai
Composite Index gained 0.74%.
"Though Chinas economic data is disappointing, the equity
market is unevenly supported by certain sectors. Insurance and
tech shares have rebounded from the previous decline, while
health care and energy have gained with renewed domestic COVID
outbreak and high coal prices," said Gary Ng, a senior economist
at Natixis in Hong Kong.
"Externally, the improvement in global risk sentiment has
also helped, which is shown in the weaker dollar index."
The dollar lost 0.28% against a basket of its major peers
, falling to its lowest level in October.
Sterling the Australian dollar and the New
Zealand dollar all hit month highs against the
greenback in the Asian session, while the euro hit a
However, analysts at CBA said they thought the dollar would
likely resume its uptrend as "medium-term inflation pressures
are building in the U.S. and as a result, we expect U.S. Fed
Funds futures to start pricing a more aggressive rate hike
U.S. Treasury yields also edged lower in Asia, particularly
in the middle of the curve.
Oil prices recouped earlier losses and rose on Tuesday, also
supported as risk appetite returned to markets.
Brent crude rose 0.28% to $84.56 a barrel. U.S.
crude gained 0.44% to $82.8 a barrel.
Gold also gained on lower yields with the spot price
rising 0.6% to $1,775.2 an ounce, though the metal remained well
within its recent range.
(Editing by Sam Holmes)