Asian Shares firm after US Service sector Rebounds

Asian shares firmed on Thursday, encouraged by stronger US economic data and a rise in oil prices, while growing prospects of a US rate hike hit gold and the boosted the dollar to one-month highs versus the yen. 

 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent while Japan's Nikkei gained 0.9 percent. On Wednesday, US S&P 500 Index gained 0.43 percent, led by banks and energy companies. US services sector activity recovered sharply in September from six-year low hit in August, following similarly upbeat news from US factories on Monday. 

 

"Both manufacturing and service indexes recovered from big falls in August. While it is not clear what the underlying US economic trend is, given the recovery in Japanese and Chinese surveys the global economic cycle appears to be rebounding for now," said Chotaro Morita, chief bond strategist at SMBC Nikko Securities.Rising optimism on the US economy boosted bets that the US Federal Reserve will raise interest rates in December.

 

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