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Japan’s Nikkei 225 rises more than 1%; China Eastern Airways stock drops 6%

Soegeefx AppsAsia MarketJapan’s Nikkei 225 rises more than 1%; China Eastern Airways stock drops 6%

Key Points

  • Shares in Asia-Pacific rose in Tuesday morning trade.
  • Investors will watch shares of China Eastern Airlines in Hong Kong, after the carrier’s Boeing 737 passenger jet crashed in southern China on Monday.
  • U.S. Federal Reserve Chairman Jerome Powell on Monday pledged tough action on inflation, days after the central bank raised interest rates for the first time in more than three years.

SINGAPORE — Shares in Asia-Pacific rose in Tuesday morning trade, though shares of China Eastern Airlines in Hong Kong fell after the carrier’s Boeing 737 passenger jet crashed in southern China on Monday.

In Tuesday morning trade, shares of China Eastern Airlines in Hong Kong dropped 6.18%.

Meanwhile, Hong Kong-listed shares of Chinese tech juggernaut Alibaba surged more than 3% after the firm announced Tuesday an upsizing of its share repurchase program from $15 billion to $25 billion.

Hong Kong’s broader Hang Seng index climbed 0.63%.

Japanese stocks led gains regionally, with the Nikkei 225 jumping 1.56% while the Topix index climbed 1.31%.

Mainland Chinese stocks were mixed, as the Shanghai composite sat fractionally higher while the Shenzhen component dipped 0.449%.

South Korea’s Kospi advanced 0.7%. In Australia, the S&P/ASX 200 gained 1.17%.

MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.19% higher.

Fed watch

Investors also watched for market reaction to comments by U.S. Federal Reserve Chairman Jerome Powell vowing tough action on inflation.

Fed Chair Powell said Monday that inflation is “much too high,” with the central bank set to “take the necessary steps to ensure a return to price stability.”

“In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so,” Powell said.

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Those comments came less than a week after the central bank raised interest rates for the first time in more than three years.

Powell’s messaging “could not be clearer,” according to National Australia Bank’s Ray Attrill.

“The US Fed Funds futures now has 42bps of tightening priced for May up from 3.5bps at Friday’s close, and 80bps over the combined May-June meetings, so now flirting with the notion of back-to-back 50 point increases,” Attrill said.

Shares on Wall Street dipped overnight, with the S&P 500 fractionally lower at 4,461.18 while the Dow Jones Industrial Average slipped 201.94 points to 34,552.99. The Nasdaq Composite shed 0.4% to 13,838.46.

TICKER COMPANY NAME PRICE CHANGE %CHANGE
.N225 Nikkei 225 Index *NIKKEI 27242.88 415.45 1.55
.HSI Hang Seng Index *HSI 21437.75 216.41 1.02
.AXJO S&P/ASX 200 *ASX 200 7367.5 89 1.22
.SSEC Shanghai *SHANGHAI 3255.79 2.1 0.06
.KS11 KOSPI Index *KOSPI 2703.37 17.32 0.64
.FTFCNBCA CNBC 100 ASIA IDX *CNBC 100 9128.32 76.86 0.85

Oil rises more than 2%

Oil prices were higher in the morning of Asia trading hours, with international benchmark Brent crude futures up 2.84% to $118.90 per barrel. U.S. crude futures climbed 2.58% to $115.01 per barrel.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.678 — still above levels below 98 seen last week.

The Japanese yen traded at 119.93 per dollar, weaker than levels below 118.3 seen against the greenback last week. The Australian dollar was at $0.7385, largely holding on to gains following its rise from below $0.72 last week.

Source : CNBC

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