World Indices

 Asia Extends Global Stock Rally After U.S. Record: Markets Wrap

Stocks in Asia followed their U.S. peers higher amid signs a rally that took global equities to a record high is broadening into other sectors and away from technology. Treasuries edged up.

Japan’s Topix index opened about 1% higher, while South Korea and Australia also rose. S&P 500 futures were steady after the index climbed 1.5% to hit another all-time high with utilities and materials stocks leading the charge and technology shares lagging. The dollar held on to gains as the euro slid further below $1.20, a level it breached for the first time in more than two years Tuesday. Oil steadied after a slide, while gold held Wednesday’s retreat.

The global stock rally has pushed major indexes to record highs as traders bet that a flood of liquidity unleashed by central banks will make its way into equity markets. The rotation away from the tech titans that have led gains this year -- with Apple, Tesla and Zoom Video all slumping Wednesday -- could signal confidence in a broader economic recovery from the pandemic and hopes for a vaccine.

“What we are seeing is a little bit of profit taking now in the big tech sector as people look to rebalance their portfolios going into the last part of this year,” Ann Berry, partner at Cornell Capital LLC, said on Bloomberg TV. “Folks are trying to go back to basics a little bit as we continue to see these surges and the topping out in the value of the market right now.”

Meantime, the U.S. Centers for Disease Control and Prevention has told states to prepare for a Covid-19 vaccine to be ready by Nov. 1, an aggressive goal that suggests availability just before the presidential election. Still, infectious disease expert Anthony Fauci warned of a potential surge in American cases from the coming long holiday weekend.

“Markets continue to show unrestrained faith in the capacity of central bank liquidity to chart a relatively smooth path for the global economy out of the Covid challenges,” said Stephen Miller, investment strategist at GSFM.

Here are some key events to watch this week:

U.S. jobless claims for the week ended Aug. 29 are due Thursday.

Eurozone retail sales data for the month of July to be released on Thursday.

U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.