Asian Stocks Follow Wall Street Higher Ahead of Brexit Vote

An investor stares at a stock price board at a stock trading hall in 2016 in Hangzhou, capital of east China's Zhejiang Province. Photo: Long Wei / Associated Press
An investor stares at a stock price board at a stock trading hall in 2016 in Hangzhou, capital of east China's Zhejiang Province. Photo: Long Wei / Associated Press

BEIJING — Asian stocks followed Wall Street higher on Tuesday as investors awaited Britain’s vote on a plan to leave the European Union.

Thailand’s SET gained marginally, trading at 1,627.59 on Tuesday afternoon. The Shanghai Composite Index rose 0.6 percent to 3,043.53 points and Tokyo’s Nikkei 225 gained 1.1 percent to 21,503.69. Hong Kong’s Hang Seng added 1.1 percent to 28,821.14 and Seoul’s Kospi surged 1.0 percent higher at 2,158.88.

Sydney’s S&P-ASX 200 slipped 0.1 percent to 6,174.80, while markets in New Zealand, Taiwan and Southeast Asia were higher.

Overnight, gains in tech stocks drove the benchmark Standard & Poor’s 500 index to its biggest daily gain since January, snapping a five-day losing streak for the S&P, which was coming off its worst weekly stumble this year.

The S&P 500 gained 1.5 percent to 2,783.30. The Dow Jones industrial average rose 0.8 percent to 25,650.88. The Nasdaq composite jumped 2 percent to 7,558.06.

Nvidia rose after agreeing to buy chipmaker Mellanox. Apple benefited from an analyst upgrade.

Boeing Co.’s stock slumped 5.3 percent after the second fatal crash involving the newest version of its popular 737 jetliner. An Ethiopian Airlines jetliner went down Sunday, killing 157 people. That followed the crash of another 737 Max 8 crashed in Indonesia on Oct. 29 that killed 189 people.

Authorities in Ethiopia, China, Singapore and Indonesia have grounded all Boeing 737 Max 8 aircraft. At one point Monday, Boeing shares slid more than 13 percent.

British lawmakers were due to vote Tuesday on a plan to leave the European Union following negotiations in Strasbourg over details including Britain’s border with the Irish Republic.

Britain is due to pull out of the EU in less than three weeks, on March 29, but Prime Minister Theresa May’s government has not been able to win parliamentary approval for its agreement. The impasse has raised fears of a chaotic “no-deal” Brexit that could disrupt businesses in Britain and the 27 remaining EU countries. May said the latest changes should overcome lawmakers’ qualms about a mechanism to keep an open border between Britain’s Northern Ireland and EU member Ireland.

“Investors will likely favor risk-taking on positive Brexit news and a strong showing on Wall Street overnight,” Nicholas Mapa and Prakash Sakpal of ING said in a report. “Technology and energy shares are seen to drive the rally in Asia but market players remain wary ahead of China retail sales data later in the week.”

 

Energy

Benchmark U.S. crude rose 14 cents to USD$56.93 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped 72 cents on Monday to close at $56.79. Brent crude, used to price international oils, added 7 cents to $66.65 per barrel in London. It gained 84 cents the previous session to $66.58.

 

Currency

The dollar gained to 111.31 yen from Monday’s 111.21 yen. The euro advanced to $1.1254 from $1.1245.

Story: Joe McDonald