BEIJING (AP) – Asian stocks rose Tuesday on optimism Britain will vote to stay in the European Union as investors awaited an economic report by the head of the U.S. Federal Reserve.
KEEPING SCORE: Tokyo’s Nikkei 225 rose 1.2 percent to 16,158.58 points and the Shanghai Composite Index added 0.2 percent to 2,893.42. Hong Kong’s Hang Seng advanced 0.5 percent to 20,619.72 and Sydney’s S&P-ASX 200 gained 0.2 percent to 5,268.90. Benchmarks in Taiwan, Singapore and Indonesia also rose. India’s Sensex lost 0.2 percent to 26,819.04 and New Zealand also declined.
BREXIT: Global stocks gained as opinion polls and betting markets indicated Britons will vote to remain in the European Union in a referendum Thursday. Many expect a departure, known informally as Brexit, would hurt the British economy and possibly encourage other countries to leave. Uncertainty about the outcome has weighed on global markets. The vote is expected to be close.
FED WATCH: Federal Reserve Chair Janet Yellen was due to give a semiannual report on the U.S. economy to the Senate. The Fed suggested in a statement after its latest policy meeting that it needs a clearer economic picture before resuming interest rate hikes it began in December. Some economists think a July increase is possible if the job market rebounds from a dismal May and financial markets remain calm after Britain’s EU vote.
ANALYST’S QUOTE: “There has been little follow-through to the rapid recovery in sentiment witnessed during yesterday’s Asian trading session,” said Citigroup analysts in a report. With no major data due out in Asia, “investors will likely continue to focus on the calculus surrounding the UK’s EU referendum,” they said. “There will also be interest in tonight’s Congressional testimony by Fed Chair Yellen.”