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June 21, 2021, 11:52 p.m. EDT

Asian markets rebound, led by Nikkei’s big gain

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By Associated Press

TOKYO — Asian shares rebounded from their retreat a day earlier, tracking Wall Street’s recovery from the Federal Reserve’s reminder it will eventually provide less support to markets.

Japan’s benchmark Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +1.04% jumped 3% in morning trading. Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -0.0014% added 1.5% and South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 -0.91% rose 0.7%. Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -4.13% edged up 0.1%, while the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -2.34% gained 0.8%. Stocks slipped in Singapore /zigman2/quotes/210597985/delayed SG:STI -0.57% , but advanced in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.96% and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.08% .

Although the latest bout of jitters over a possible easing of help from the Federal Reserve and other central banks appears to have passed, analysts said rising coronavirus cases in the region remained a concern.

“Much of the region is dealing with renewed waves of COVID-19 infections. These waves, especially in the case of India, Indonesia and some other countries in Southeast Asia, are the most severe yet,” said Venkateswaran Lavanya at Mizuho Bank in Singapore.

On Monday, the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.07% snapped 1.4% higher, to 4,224.79, recovering nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.08% gained 1.8% to 33,876.97 and the Nasdaq composite /zigman2/quotes/210598365/realtime COMP -0.27% rose 0.8%, to 14,141.48.

Investors are still figuring all the ramifications of the Fed’s forecast that may start raising short-term interest rates by late 2023. That’s earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation.

The market’s immediate reaction to last week’s Fed news was to send stocks lower and interest rates higher. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already.

But it’s not like the Fed said it will hike rates from their record low of nearly zero anytime soon.

“If markets are worried about a march back to more normal monetary and fiscal policy as the economy recovers, it will be a very long march,” Barings chief global strategist Christopher Smart said in a note. In the meantime, support from both the Federal Reserve and the U.S. government should continue to help stock prices, even if they do look expensive compared with history, he said.

In energy trading, benchmark U.S. crude picked up 13 cents to $73.25 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.83 to $73.12 on Monday. Brent crude , the international standard, gained 23 cents to $75.13 a barrel.

In currency trading, the U.S. dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.1900% rose to 110.39 Japanese yen from 110.31 yen.

/zigman2/quotes/210597971/delayed
JP : Nikkei
27,833.29
+285.29 +1.04%
Volume: 0.00
July 26, 2021 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
7,394.30
-0.10 -0.0014%
Volume: 548,085
July 26, 2021 5:33p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
3,224.95
-29.47 -0.91%
Volume: 826,066
July 26, 2021 3:30p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,192.32
-1,130 -4.13%
Volume: 2.70M
July 26, 2021 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,467.44
-82.96 -2.34%
Volume: 44.29B
July 26, 2021 3:01p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,138.97
-18.08 -0.57%
Volume: 0.00
July 26, 2021 5:20p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
17,403.56
-169.36 -0.96%
Volume: 0.00
July 26, 2021 1:31p
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
6,106.39
+4.70 +0.08%
Volume: 0.00
July 26, 2021 3:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
4,408.88
-2.91 -0.07%
Volume: 73.52M
July 26, 2021 9:33a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
35,035.03
-26.52 -0.08%
Volume: 12.27M
July 26, 2021 9:33a
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/zigman2/quotes/210598365/realtime
US : Nasdaq
14,796.42
-40.57 -0.27%
Volume: 300,428
July 26, 2021 9:33a
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/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
110.3390
-0.2100 -0.1900%
Volume: 0.0000
July 26, 2021 9:33a
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