TOKYO (Reuters) – Asian stocks recovered from a two-month low on Thursday and the euro enjoyed a respite after sinking to its lowest level in 10 months due to political turmoil in Italy that shook markets global financial
Spreadbetters expected European shares to open slightly more high, with the British FTSE. FTSE rose 0.05 percent, the German DAX .GDAXI added 0.1 percent and the French .ACCH rose 0.05 percent.
Hong Kong's Hang Seng .HSI rose 0.75 percent and the Shanghai Composite Index .SSEC gained 1.4 percent after news that growth in China's vast manufacturing sector accelerated sharply and well above forecasts in May to a maximum of eight months.
MSCI's broader index of Asia and the Pacific shares outside Japan .MIAPJ0000PUS gained 0.6 percent after falling to its weakest level since early April on Wednesday.
KOSPI .KS11 from South Korea added 0.5 percent and Nikkei .N225 from Japan added 0.8 percent.
Overnight, the Dow. DJI rose 1.25 percent and the S & P 500 .SPX rose 1.27 percent.
World stocks were battered, government insurance prices rose sharply, and the euro fell earlier in the week after Italy's two antiestate parties scrapped plans to form a coalition.
That raised the possibility of a new general election, stoking fears that such a vote would effectively be a referendum on the euro's membership in Italy.
A degree of calm, however, returned with the two sides against the establishment renewing efforts to form a coalition government instead of forcing Italy to hold elections for the second time this year.
"Experience shows that these 'crises' tend to stabilize for long periods once the initial adjustment of market expectations has been made," wrote Carl Weinberg, chief international economist at High Frequency Economics. , in a note for clients.
A successful five- and ten-year government bond auction also eased concerns over Italy's ability to finance itself after turbulence in the debt market triggered the biggest one-day rise in bond yields at two. years in 26 years. Bond yields increase as prices fall.
"Financial markets have been able to assess and digest the situation in Italy in recent days and now is the time for a small respite from the turbulence," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. in Tokyo
"The postponement will allow markets to refocus on their fundamentals, such as the US non-farm jobs report on Friday."
The euro remained unchanged at $ 1.1664 EUR = after 1 percent the previous day. The currency sank to $ 1.1510 on Tuesday, its lowest level since the end of July 2017.
The dollar index against a basket of six major currencies .DXY fell 0.1 percent to 94.055 after rising to a maximum of seven months of 95,025 on Tuesday.
The US currency was trading at 108,780 yen JPY =, compared to a low of 108,115 brushed on Tuesday as risk aversion in the broader markets increased investor demand for the yen, which is often sought in times of market instability.
The dollar received some support, as signs of a relaxation in the political crisis in Italy caused the US Treasury bonds. UU Up from the minimum of several weeks.
The yield on the 10-year Treasury bond US10YT = RR remained at 2,849 percent after falling on Tuesday to 2,759 percent, its lowest level since April 11.
Crude oil prices fell after recovering overnight.
U.S. Crude prices fell 0.18 percent to $ 68.09 a barrel after gaining 2.2 percent on Wednesday when Russia's central bank expressed caution over plans to increase oil supplies. Prices fell on Tuesday to a six-week low of $ 65.80 a barrel amid worries that Saudi Arabia and Russia could increase their output.
Brent crude LCOc1 lost 0.35 percent to $ 77.23 a barrel after jumping 2.8 percent on Wednesday.
Shinichi Saoshiro report; Edition of Shri Navaratnam and Eric Meijer