Asian stock markets are rebounding Wednesday morning following a 4.3% rebound of the Dow Jones Industrial Average in the US, Tuesday. US stocks opened higher and after the Federal Reserve promised to keep US interest rates low for the next two years stock, soared.
"The benchmark Japanese Nikkei N225 was up 1.6 percent at 9,085.34 in mid-morning trade, after climbing as high as 9,144.33. The broader Topix .TOPX gained 1.3 percent to 780.28."
Earlier in the day I provided a more complete discussion of the Federal Reserves impact on the US market in Dow Closes Up 3.98%, S&P 500 Up 4.75%, As Federal Reserve Promises Low Interest Rates For Two Years.
Alex Richardson, of Reuters reports, Asia stocks bounce after Fed move stems rout.
SINGAPORE (Reuters) - Asian stocks rebounded on Wednesday, following a jump in U.S. shares, after the Federal Reserve made an unprecedented pledge to keep interest rates near zero for at least two years, stemming a global equity rout for the time being.
But investors remained wary about implication of the central bank's move -- that it expects the U.S. economy to remain weak far longer than previously forecast -- supporting demand for safe havens such as gold and the Swiss franc.
MSCI's all-country world stock index .MIWD00000PUS remained about 17 percent below its May peak on Wednesday, after slipping as far as 20 percent, the generally accepted definition of a bear market, on Tuesday.
The dollar dipped to around 77.00 yen, not far from the all-time trough of 76.15 reached in mid-March. The euro also touched a record low against the Swiss franc at around 1.0075, before recovering some ground to 1.0384 francs. But the single currency jumped on the dollar to $1.4350, putting more distance from last week's trough around $1.4054.
Gold firmed from late New York levels to around $1,755 an ounce, after striking the latest in a string of records around $1,778 on Tuesday.
U.S. crude oil climbed back above $80 a barrel, rising more than 2 percent to trade around $81.05.
What a rollercoaster couple of weeks this has been.
For now, the downward spiral seems to be broken, with global stocks going into a second day of rising asset prices.