Asian markets end higher on dovish Fed prospects; European markets rise

Australian stocks recovered from an early loss as Covid cases in the country spike.

Aug 30, 2021 02:08 IST India Infoline News Service

Asian markets ended mostly higher on Monday with the Nikkei 225 soared 0.54% to close at 27,789.29, while the Topix index gained 1.11% to 1,950.14. Hong Kong’s Hang Seng index closed 0.52% higher at 25,539.54.

South Korea’s Kospi ended up 0.33% at 3,144.19, whereas Australian stocks recovered from an early loss as Covid cases in the country spike. The S&P/ASX 200 in Australia closed 0.22% higher at 7,504.50.

Mainland Chinese stocks ended mixed as the Shanghai Composite rose 0.17% to 3,528.15, while the Shenzhen component dipped fractionally to 14,423.37.

European stocks were trading slightly higher on Monday with the pan-European Stoxx 600 index was trading higher with most sectors in positive territory. U.K. markets are closed for a public holiday.

Meanwhile, US equities were upbeat last week with all three key indices in the USA recording weekly gains to the tune of 1%-2.8%.

Notably, dovish commentary from Federal Reserve Chairman Powell in the Jackson Hole Symposium and expectations of sustainable strong corporate earnings overshadowed concerns of rising delta variant of Coronavirus cases.

For the current week, August nonfarm payroll data would be the most crucial data point for the week as Mr. Powell has stressed about the sustainability of job recovery before finalizing the timeframe for scaling back the monthly asset purchase programme.

The consensus estimate is 7.5 lakh jobs addition in Aug’21 with an unemployment rate at 5.2%. Additionally, consumer confidence data, manufacturing and services PMI will also be in focus. 

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