Gold Silver Reports – Asia Stocks Rally After Recovery in U.S. Equities – Asian equity markets recovered some of the losses sustained in the global rout after U.S. shares rallied amid a welter of calls to “buy the dip.” The dollar and Treasuries were steady.
Japan’s benchmarks jumped about 3 percent at the open and stocks also rose in Sydney and Seoul. A topsy-turvy session for the S&P 500 Index ended with technology, materials and consumer shares leading a 1.7 percent advance. The benchmark for U.S. share volatility went through wild gyrations one day after more than doubling, though ended the session down almost 20 percent.
“The pullback may be considered a healthy correction,” said Candice Bangsund, a fund manager in Montreal at Fiera Capital Corp., which oversees more than $128 billion. “The favorable conditions that have underpinned the stock market rally over the last year remain largely intact at this time — the global expansion continues and corporate earnings remain in acceleration mode.”
The sharp sell-off in stocks around the world that started last week and accelerated this week can be explained by a multitude of factors from concerns over the path of U.S. monetary policy to a rapid unwinding of trades predicated on continued low volatility in markets. Traders are now watching whether this rally can be sustained after the slump left markets from Europe to Japan in technically oversold territory.
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Goldman Sachs Group Inc.’s chief strategist was among those saying it’s time to buy U.S. stocks.
Meantime, oil rose after three days of declines as an industry report was said to show an unexpected decline in U.S. crude stockpiles. Bitcoin traded around $7,700 after at one point sinking below $6,000 for the first time since October. – Goldman Neal Bhai Reports
