Nikkei 225 opens 1.2% higher Overnight Dow Jones up 2.43%
International Business News – Stocks in Japan and South Korea opened higher on Wednesday, with the Nikkei 225 index opening 1.2% higher at 27295.95 and the TSE index opening 1.3% higher at 1927.14. South Korea’s Seoul Composite Index opened 1.5% higher.
U.S. stocks rose across the board as investors assessed the earnings outlook and speculation of a market bottom rose. The S&P 500 closed near its intraday high, its biggest one-day gain since June 24, with all 11 industry sectors rising.
The Nasdaq (11713.1475, 353.10, 3.11%) 100 index outperformed major benchmark stock indexes, closing up 3.1%. Apple (151, 3.93, 2.67%), Alphabet and other large-cap stocks rebounded after Monday’s losses. The market heads into earnings season with the possibility of disappointing earnings, and any pleasing results could bring big gains.
The latest Bank of America (33.35, 1.09, 3.38%) fund manager survey shows investors are on high alert for signs that high inflation (147.37, 5.68, 4.01%) and tightening monetary policy are squeezing consumers and jobs, with stock allocations falling to their lowest level since October 2008 and cash exposure soaring to its highest since 2001.
On the earnings front, shares rose after Hasbro, the largest U.S. toy company, beat analysts’ earnings estimates. IBM (130.88, -7.25, -5.25%) fell as the company lowered its free cash flow forecast. Johnson & Johnson (171.69, -2.54, -1.46%) reversed earlier gains as it lowered its full-year earnings and revenue estimates.
Twitter (39.49, 1.08, 2.81%) shares rose after a lawsuit filed against billionaire Elon Musk for canceling a $44 billion buyout deal was granted an expedited hearing.
By the close of trading: The S&P 500 was up 2.8%. The Nasdaq 100 index rose 3.1%. The Nasdaq Composite Index rose 3.1 percent. The Dow Jones (31827.0508, 754.44, 2.43%) Industrial Average rose 2.4%. The Russell 2000 Index rose 3.5%.