US stocks rose on Wednesday for a second day, with the S&P 500 gaining 1.2%, the Nasdaq adding 1.8% and the Dow Jones increasing about 220 points, following the worst sell-off in two years on Monday. Traders continue to digest the economic and monetary policy outlook, while refocusing on the earnings reports. At the same time, the Bank of Japan offered investors some confidence after Deputy Governor Shinichi Uchida said the central bank will refrain from hiking interest rates when the markets are unstable. Tech was the top performing sector, followed by energy and financials while health was in the red. On the corporate front, shares of Disney were down about 3.4% after the company swung to a profit of $2.62 billion but operating income at the parks unit dropped. Also, Amgen lost nearly 2.7% after its profit missed expectations and Super Micro Computer sank about 14% after an earnings miss.
The Nikkei 225 Index rose 1.19% to close at 35,090 while the broader Topix Index gained 2.26% to 2,489 on Wednesday, rising for the second straight session after Bank of Japan Deputy Governor Shinichi Uchida said they won’t raise interest rates when the market is unstable. On Monday, the Nikkei suffered its worst session since 1987 amid US recession fears and a major unwinding of yen carry trades following a hawkish shift in Bank of Japan monetary policy. The benchmark index rebounded sharply on Tuesday, logging its best day since October 2008. Financial stocks led the charge, with strong gains from Sumitomo Mitsui (10.5%), Mitsubishi UFJ (8.7%) and Mizuho Financial (8.6%). Other index heavyweights also advanced, including Mitsubishi Heavy Industries (10%), SoftBank Group (5.2%) and Hitachi (4.4%).
The DAX gained 0.8% to trade around the 17485 level on Wednesday, tracking its European peers higher, as traders try to shake off concerns about the global economy and as Bank of Japan Deputy Governor Uchida offered investors some confidence by saying the central bank won't raise interest rates when financial markets are unstable. Meanwhile, the earnings season continues with Continental gaining almost 5% after the company delivered better-than-expected results although it cut the full-year sales guidance due to lower car production. On the other hand, shares of Siemens Energy were down about 0.5% despite reporting a smaller net profit loss in Q2. Commerzbank lost about 4.6% after reporting a fall in profits and Puma sank more than 12% after booking a decline in sales and narrowing its full-year operating profit forecast.
The BSE Sensex climbed about 875 points, or 1.1%, to settle at 79,468 on Wednesday, snapping its three-day losing streak and joining the global rebound on receding fears of a US economic slowdown. The Indian market witnessed broad-based buying across sectors, with the realty sector seeing a relief rally due to the reinstatement of indexation benefits. The energy sector and public companies gained about 3% and 4%, respectively, led by a 7.5% jump in Oil & Natural Gas Corp. On the flip side, IndusInd Bank faced the steepest decline, dropping 2.5%. Traders are now awaiting the Reserve Bank of India's (RBI) upcoming policy decision, with analysts expecting it to maintain the current interest rates.
The FTSE 100 index rose 1% on Wednesday, attempting to recover after a recent stock market downturn, with most companies experiencing gains. Heavy-weight stocks like HSBC Holdings and AstraZeneca saw increases of over 1%, while Shell and BP climbed 0.9% and 0.5% respectively, and Unilever rose by 0.5%. Homebuilders also performed well, up by more than 1.3% following data that revealed a considerable rise in housing prices in the country in July. Wealth manager Quilter saw a significant increase of more than 4% after surpassing half-year earnings expectations and reporting strong cash inflows. The rebound on Wall Street on Tuesday had a positive impact on global sentiment, offsetting the losses seen on Monday. However, WPP experienced a decline of 1.3% after revising its annual revenue growth forecast downwards and agreeing to sell its controlling stake in FGS Global to KKR for $775 million.
