Asian stocks climbed on Tuesday thanks to the rescue of Credit Suisse, which halted selling in bank shares, although the tone was shaky and market turmoil had traders speculating when the United States’ rate hikes would end.
Market pricing and Wall Street analysts anticipate that the U.S. Federal Reserve would approve a quarter-point interest rate increase at the Federal Open Market Committee meeting, which begins later today.
As of 9.33 A.M. (Bangkok time), the S&P/ASX 200 in Australia rose 1.32%, while South Korea’s Kospi was up 0.78%.
Markets in Japan are closed for a holiday.
Hong Kong’s Hang Seng index was up 0.65%. In mainland China, the Shanghai Composite added 0.30%.
U.S. stocks increased overnight as regional banks recovered. By the end of trading, the Dow Jones Industrial Average rose 1.20%, the S&P 500 gained 0.89 %, and the Nasdaq Composite climbed 0.39 %.
The immediate threat to European financial stability has been cauterized by a Swiss government-backed purchase of Credit Suisse by UBS. Still the annihilation of some Credit Suisse bondholders has sent shockwaves through bank debt, and investors are on high alert due to continuing signs of stress at U.S. banks.
