Asian stocks rebound as oil hits two-year high

  • Date: 22-Jun-2021
  • Source: Financial Times
  • Sector:Financial Markets
  • Country:Gulf
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Asian stocks rebound as oil hits two-year high

Stocks across Asia-Pacific jumped following a rebound on Wall Street and oil rose to its highest level in two years as investors were reassured by signals that the Federal Reserve would continue to support the economic recovery from the coronavirus pandemic.

In early trading in the region on Tuesday, Japan's Topix rose 2.4 per cent and Australia's S&P/ASX 200 climbed 1.2 per cent. China's CSI 300 index of Shanghai- and Shenzhen-listed stocks rose 0.3 per cent.

The moves followed a bounce for US stocks on Monday, with the S&P 500 closing up 1.4 per cent. US shares tumbled last weekafter the Federal Reserve pivoted to a more hawkish tone, prompting fears that interest rate rises could derail the global economic recovery.

But market sentiment got a boost on Monday from more dovish commentary from Fed officials including chair Jay Powell, who in prepared remarks ahead of congressional testimony on Tuesday said the central bank "will do everything we can to support the economy for as long as it takes to complete the recovery“.

John Williams, president of the Federal Reserve Bank of New York, also said on Monday that the US economy was not yet ready for the central bank to start pulling back