US stocks gain on positive news from Asia
September 30, 2015, 1:01 pm

Positive trends in China and Japan have boosted both Asian and US stocks, but is it enough to convince the Fed to raise interest rates? [Xinhua]

Consumers in China appear to have shrugged off stock market woes and fears of an economic slowdown, a new report has shown.

The Westpac MNI China Consumer Sentiment Indicator rose to 118.2 in September from 116.5 in August – the highest level in 16 months.

It previously peaked in 2011.

The rise on consumer confidence appears to indicate that government restructuring of the economy may be working.

The report from China, and anticipated Japanese government fiscal and monetary stimulus to boost its struggling economy, helped boost Asian and US stocks Tuesday and Wednesday.

The Nikkei 225 closed 2.7 per cent higher at 17,388 on Wednesday, recouping losses from global sell-off a day earlier.

South Korea’s Kospi rose 0.1 per cent and Australia S&P/ASX 200 jumped 1.3 per cent.

All eyes were on China’s benchmark Shanghai Composite, which rose 0.5 per cent, while Hong Kong’s Hang Seng did better with a 1.2 per cent close on Wednesday.

Asia’s stock performance is expected to buoy markets in the US.

On Tuesday, the S&P 500 rose 0.12 percent to 1,884.09, while the Dow Jones industrial average jumped 0.6 percent to 16,049.13. But the Nasdaq composite dropped 0.6 percent to 4,517.32.

However, fears of China’s economic slowdown persist, market analysts have said.

Wall Street is now looking for signs of an anticipated interest rate hike from the Federal Reserve. Analysts will be scouring for clues when Fed chief Janet Yellen gives a speech on banking policy in Missouri later Wednesday.

Meanwhile, a private companies employment report from ADP and Moody’s Analytics shows that 200,000 jobs were added in this non-farm sector.

This exceeds analyst forecasts of 194,000 jobs and indicates what some have called “job market resilience”.

Such analysis is helped by another report which shows American consumer confidence rose to 103 from 101.3 last month, beating economists’ forecasts of a drop to the mid-90s.

A Department of Labor jobs report is expected on Friday.

The BRICS Post with inputs from Agencies