Asian shares soared today after Wall street posted profits.
Japan’s Nikkei 225 index NIK increased by 2.38%. Toshiba Corp. gained 3.45%.
Meanwhile, Hong Kong’s Hang Seng increased by 0.47%. In Seoul, the Kospi climbed by 0.18%. Sydney’s S&P/ASX 200 XJO added 0.4%. The Shanghai Composite index yielded 0.23%.
Shares hiked in Singapore by 1.04%, Taiwan by 0.61%, and Indonesia by 0.02%.
Wall street experienced gains this Wednesday. At the close of the session on the New York Stock exchange, the Dow Jones increased by 0.93% or 316.01 points to 34,137.31 units. Meanwhile, the S&P 500 also hiked by
0.93% or 38.48 points, up to 4,173.42 units.
The Nasdaq composite index surged by 1.19% or 163.95 points, to 13,950.22 units.
Most sectors finished in green, led by basic materials, energy, and finance sectors. Only decreases seen on the day were from public services companies which yielded 0.9%, and communications with a 0.28% decrease.
Investors remain on the lookout for corporate results, which are generally in line with expectations, as they are concerned with the evolution of the pandemic in Asia and emerging markets.
Analysts expect the results to be positively surprising, but the risks are asymmetric.
Among the 30 listed on the Dow Jones, especially IBM (3.90%), Dow Inc (3.75%), Nike (2.19%), and Caterpillar (2.12%) soared.
Only four firms dropped, including Procter & Gamble (-0.69%) and Verizon (-0.43%).
Netflix shares turned negative
Netflix was one of the protagonists of the session after reporting yesterday that it doubled its profits between January and March. However, it lowered its subscription rate, which the market did not like.
The results were published at the close of the market, posting a 0.88% loss in the session. It came to yield up to 11% after hours and then settle those losses at 8.76%. During the ordinary session yesterday, the value dropped above 7% to turn negative.
In the first quarter of 2020, the company gained 15.8 million more subscribers, which doubled expectations. The trend continued in the second quarter of the year. Between April and June last year, 0.1 million people subscribed on the platform, compared to forecasts of just one million. On the other hand, its shares exceeded the market expectations with $3.75 versus the expected $2.97. The earnings totaled 7.16 billion, versus the expected 7.130.
The rise in quotas in some countries like the US produced improvements in income. In the interannual rate, the company posted an increase of 24%. It has also approved a 5 billion share buyback program starting this year with no expiration date and is expected to begin this quarter.
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