Hong Kong (AP) European markets were lower in early trading but Asian stocks extended their new year’s rally on hopes that U.S. stimulus measures will help speed the world’s economic recovery.
The yen continued to lose ground against the dollar, buoying shares in exporters.
Most recently, buying sentiment has been supported by President-elect Barack Obama’s proposals to revive the world’s largest economy.
But one analyst says that with company earnings expected to be dire in the next several months, the “Obama effect” could be short-lived.
Most major Asian benchmarks were up Wednesday. Casting a shadow on the region, markets in India and Hong Kong fell sharply. In India, the Chairman of heavyweight tech firm Satyam Computer Services quit after admitting the company’s profits had been inflated for several years. Shanghai’s market dipped slightly.
U.S. futures eased modestly, pointing to a soft open on Wall Street.