Investors clawed back losses that came on the back of last week’s...

Investors clawed back losses that came on the back of last week’s Paris attacks


Asian stocks rose across the board on Tuesday following a surge on Wall Street overnight as investors clawed back losses that came on the back of last week’s Paris attacks.

Meanwhile, expectations for a December rate increase from the Federal Reserve additionally kept the dollar on a basis that was bullish.

Spreadbetters saw stronger risk appetite retained in Europe, forecasting a higher open the DAX in Germany and France’s CAC.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7 percent, rebounding from a 6-week low hit the previous day on risk aversion actuated by the assault on the French capital.

South Korea’s Kospi was up 1.4 percent, Australian shares gained 1.8 percent and Shanghai stocks climbed 1.4 percent.

“Investors believe that the strikes in Paris would have little impact on the international economy in the long-term,” said Hikaru Sato, senior technical analyst at Daiwa Securities in Tokyo.

“Depending on new developments, the marketplace could get changed as time goes by, but right now, market consensus is the strikes possess a limited impact on the stock market.”

Asia took early leads from Wall Street, which soared on Monday as investors determined Friday’s strikes in Paris would have little long-term influence on the U.S. market and corporate earnings. The Dow rose 1.4 percent and the S&P 500 surged 1.5 percent. [.N]

European equities had additionally held firm on Monday, with all the pan-European FTSEurofirst 300 index edging up 0.16 percent and France’s CAC dipping only 0.12 percent.

“In light of all of the catastrophe in France, it is refreshing to realize the terrorists failed to successfully terrorize the financial markets…and even though investors sold the EUR/USD, the decrease might have been a lot more exorbitant.

“In fact we did not see any very substantial moves in currencies,” wrote Kathy Lien, managing director of FX Strategy for BK Asset Management.

The dollar climbed to some 1-week high of 123.405 yen , a safe haven money generally sought in times of geopolitical anxiety. The greenback also rose to an 8-month high against the Swiss franc, another harbor.

The euro dipped to $1.0656, a 7-month trough.

Petroleum expanded gains following the Paris attacks raised geopolitical tensions that were seen to jeopardize global oil supply. [O/R]

Brent crude nudged up 0.2 percent to $44.64 a barrel, adding to overnight increases of 2.2 percent.

Area gold was little changed at $1,081.77 an ounce. The precious metal pared increases overnight as an initial flow -to-safety buying after the Paris strikes petered out.

Investor focus has returned to a possible rate increase by the Fed in December. Higher interest rates would decrease the charisma of the non-interest-paying gold.

Industrial metals did not do as well. Three-month copper on the London Metal Exchange (LME) plunged to 6-year lows, dogged by worries about demand from top consumer China. LME zinc additionally wobbled near 6-year troughs. [MET/L]

Along with concerns about demand from China, the dollar’s appreciation has buffeted industrial metals as a stronger U.S. money makes greenback-denominated commodities more expensive for buyers.