Nikkei nears two-year high as US hi-tech rebound boosts mood

Posted June 21, 2017

People stand in front of an electronic stock board of a securities firm in Tokyo, Monday, June 19, 2017.

Japan's Nikkei rose more than 1 percent to a near two-year high on Tuesday, encouraged by rebound in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.

WALL STREET: The Standard & Poor's 500 index rose 20.31 points, or 0.8 percent, to 2,453.46 and surpassed its old record, set almost a week ago, by half a percent. Britain's FTSE 100 was up 0.6 percent at 7,506. US shares were also set to drift higher, with Dow futures edging up 0.1 percent to 31,474.

ASIA'S DAY: Japan's benchmark Nikkei 225 gained 0.6 percent to 20,067.75, while Australia's S&P/ASX 200 added 0.5 percent to 5,805.20.

BUYOUT BOOST: PerkinElmer, which sells testing equipment and scientific instruments, jumped $1.59, or 2.5 percent, to $65.16 for one of the largest gains in the S&P 500 after it agreed to buy EUROIMMUN Medical Laboratory Diagnostics of Germany for $1.3 billion in cash. South Korea's Kospi gained 0.4 percent to 2,370.90. The Dow Jones industrial average added 144.71 points, or 0.7 percent, to 21,528.99, and the Nasdaq composite jumped 87.25, or 1.4 percent, to 6,239.01.

Tokyo stocks attracted purchases as investors took heart from the dollar's rise above ¥111.50 after William Dudley, president of the U.S. Federal Reserve Bank of NY, on Monday showed confidence in the U.S. economy's outlook, brokers said.

Naoki Kamiyama, chief strategist at Nikko Asset Management, said the bullish tone in the Japanese equity market stemmed largely from the stronger dollar and nascent economic recoveries in Japan, the United States and Europe. Speculation has been growing that MSCI might include Chinese shares to its benchmark. Brent crude, used to price global oils, gained 21 cents to $47.58 a barrel in London.

"The environment is good as the dollar has risen into the mid-111 yen range while USA stocks were higher", Okasan Online Securities said in a commentary.

ENERGY: Benchmark U.S. crude rose 18 cents to $44.92 a barrel.

LONDON (AP) - The British pound was under pressure Tuesday after Bank of England Governor Mark Carney reined back market expectations that the bank would soon raise interest rates, while oil prices struck 2017 lows on worries over a glut in the market.