HONG KONG- Asian stocks rose on Thursday to clock their strongest performance in 10 months, as investor sentiment warmed on a relatively benign global interest rates outlook and signs of economic recovery.
Europe and Wall Street are also set to open higher with FTSE futures and E-mini futures for the S&P 500 index up about 0.1 percent each.
The MSCI Asia-ex-Japan stocks index was up 0.1 percent, gaining 6.9 percent so far this month, setting it on course to mark the best month since January.
South Korea’s KOSPI has led the rally in Asia with 10.6 percent gains this month, followed closely by Taiwan and Japan’s Nikkei
“Seems market participants are clearly taking the no landing and Fed done scenario to heart. Modest China domestic stimulus is having a positive effect,” said John Milroy, an investment adviser at Ord Minnett in Sydney.
“Inflation prints and bond markets suggesting the central banks are at least due a pause in the raising cycle. Markets like that.”
Hong Kong’s Hang Seng Index pared losses to be up 0.1 percent , while China’s benchmark CSI300 Index rose as much as 0.24 percent , despite disappointing Chinese manufacturing data released on Thursday.
The closely watched factory survey showed manufacturing activity contracted for a second straight month in November and at a quicker pace, suggesting more government support is needed to help shore up growth in the world’s second-largest economy.
For the month, the Hang Seng has lost half a percentage point while CSI300 was down over 2 percent .
Stock markets around the world struggled on Wednesday, after a strong month driven by market expectations of peak Federal Reserve rates, and as a fall in the dollar and in US bond yields loosened financial conditions.
Ten-year US yields are down more than 60 basis points in November, on track for the steepest monthly drop since late 2008.
While US central bank officials on Wednesday sent mixed messages, investors still focused on comments made on Tuesday by Fed Governor Christopher Waller, an influential and previously hawkish voice at the bank. Waller had said rate cuts could begin in months if inflation keeps easing.
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