Asia Stocks Climb With U.S. Futures After $2.7 Trillion Wipeout

Asian stocks rose with U.S. index futures after a selloff that wiped $2.7 trillion from global equity markets on Monday. Oil climbed from six-year lows, while the yen retreated with government bonds.

   Australian and Korean equities led gains through Asia, while Chinese shares dropped a fourth day. Futures on the Standard & Poor’s 500 Index rallied 2.2 percent after the U.S. benchmark entered a correction for the first time since 2011. The dollar strengthened versus major peers as 10-year Treasury yields rose for the first time in five days. Oil climbed 1.6 percent in New York after falling to $38.24 a barrel.

   “Our bottom line is that the world’s still not a bad place,” said David McDonald, Sydney-based chief investment strategist for Australia at Credit Suisse Group AG’s wealth management and private banking unit. “Fundamentals aren’t as bad as the headlines would suggest. It’s just a case of whether you would want to rush in now or perhaps wait until it settles down a bit more.”

   China’s decision to cut the value of the yuan two weeks ago has sent convulsions through global markets, sending all but the safest of assets tumbling amid speculation that the world’s second-largest economy is in more trouble than previously thought. The rout has driven gauges of volatility to multi-year highs and sent bond yields tumbling as investors wound back bets that the Federal Reserve will begin raising interest-rates as soon as next month.

Πηγή: bloomberg.com