SYDNEY, Feb 4 (Reuters): Asian shares took Wall Street's lead to reach
three-month peaks on Wednesday as revived risk sentiment dented the US
dollar and sovereign bonds, though it was unclear how long this latest
mood swing would last.
Much might depend on whether oil can sustain its recent rally, thus helping to underpin energy stocks and lessen fears of global deflation.
So far on Wednesday, oil prices were down only modestly with bulls seemingly hopeful that industry cuts to investment would lessen the glut of supply in the market.
Benchmark Brent crude oil was off a slim 15 cents at $57.76, following a rise of almost 6 per cent on Tuesday. US crude was quoted 66 cents lower at $52.39, but that compares with a low last week of $43.58.
In share markets, the Nikkei jumped 1.8 per cent as banks outperformed on strong earnings from Mitsubishi UFJ Financial Group.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5 per cent to the highest since late October. Australia's main share index climbed 1.2 per cent to a near seven-year top as bulls basked in the glow of Tuesday's cut in domestic interest rates.
Shares in Shanghai firmed 0.35 percent amid speculation that China's central bank would be the next to ease policy following moves in Australia and Singapore.
A survey suggesting China's services sector grew at the slowest pace in six months in January only added to the expectations of more stimulus.
One newspaper reported 14 Chinese provinces planned to invest 15 trillion yuan ($2.4 trillion) in infrastructure and other projects to help revive growth.
Earlier on Wall Street, the Dow had ended Tuesday 1.76 per cent higher, while the S&P 500 gained 1.44 per cent and the Nasdaq 1.09 per cent.
Greek markets had led the way in Europe on hopes that progress was being made in the stand-off over the country's debt mountain.
Much might depend on whether oil can sustain its recent rally, thus helping to underpin energy stocks and lessen fears of global deflation.
So far on Wednesday, oil prices were down only modestly with bulls seemingly hopeful that industry cuts to investment would lessen the glut of supply in the market.
Benchmark Brent crude oil was off a slim 15 cents at $57.76, following a rise of almost 6 per cent on Tuesday. US crude was quoted 66 cents lower at $52.39, but that compares with a low last week of $43.58.
In share markets, the Nikkei jumped 1.8 per cent as banks outperformed on strong earnings from Mitsubishi UFJ Financial Group.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.5 per cent to the highest since late October. Australia's main share index climbed 1.2 per cent to a near seven-year top as bulls basked in the glow of Tuesday's cut in domestic interest rates.
Shares in Shanghai firmed 0.35 percent amid speculation that China's central bank would be the next to ease policy following moves in Australia and Singapore.
A survey suggesting China's services sector grew at the slowest pace in six months in January only added to the expectations of more stimulus.
One newspaper reported 14 Chinese provinces planned to invest 15 trillion yuan ($2.4 trillion) in infrastructure and other projects to help revive growth.
Earlier on Wall Street, the Dow had ended Tuesday 1.76 per cent higher, while the S&P 500 gained 1.44 per cent and the Nasdaq 1.09 per cent.
Greek markets had led the way in Europe on hopes that progress was being made in the stand-off over the country's debt mountain.
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