Upbeat U.S. economic data often fuels Fed rate hike expectations, dragging stocks and other asset markets lower. But not this time – investors cheered the unexpected expansion in manufacturing and service sector activity, and the gloom that has descended on markets recently lifted.
Asian markets should follow suit, as there’s not much locally for traders to get their teeth into – Australian consumer inflation for September and the third quarter are the only numbers likely to have any meaningful market impact.
The three main U.S. indexes closed up between 0.6% and 0.9%, and U.S. tech giants Microsoft and Google-parent Alphabet posted forecast-beating earnings after the bell.
Investors’ immediate reaction, however, was mixed. Alphabet’s cloud-based revenue fell short of analysts’ expectations, pushing shares down more than 5% in after-hours trade, while Microsoft shares rose 4% after hours.
In Asia on Wednesday, South Korea’s LG Display is expected to show a fall in quarterly revenue when it reports results. The Apple supplier has posted losses for the last five quarters but is eyeing a turnaround in the final quarter of the year.
