Asian stocks and US and European equity-index futures rallied Friday as signs the US will avoid a government shutdown boosted sentiment.
Shares in Japan and Australia climbed while the CSI 300 index of mainland China stocks touched the highest level this year, reflecting fresh optimism over the prospect of more policy support to boost consumption.
Futures contracts for US equities advanced as a stopgap funding bill looked set to pass and avoid a US government shutdown.
That’s a change in mood after the S&P 500’s Thursday drop brought its three-week rout past 10%, called a correction in trader parlance.
The Nasdaq 100, also in a correction, fell 1.9%. Treasuries eased up some of the gains from the prior session, when investors dashed to haven assets in a move that lifted gold to a record and supported the dollar.
Gains for the greenback extended into Friday, strengthening a gauge of the currency for a third day. “A short-term rebound is likely,” said Bo Pei, an analyst at US Tiger Securities.
“The reasoning is straightforward: extreme market moves are often followed by reversions.”
