US stocks open higher following global rally

New York, Sep 30 (IANS) US stocks opened sharply higher on Wednesday, as Wall Street cheered over a strong rebound in overseas stock markets.

In Asia, Japanese stocks surged 2.70 percent on Wednesday, as investors moved to reclaim Tuesday’s steep losses amid speculation that a surprise downturn in Japanese industrial production may push the Bank of Japan closer to further monetary easing, Xinhua news agency reported.

Chinese shares closed higher on Wednesday, the last trading day before the country’ s National Day holiday, with the benchmark Shanghai Composite Index up 0.48 percent.

European equities also traded drastically higher on Wednesday following a positive lead from Asia overnight, with French benchmark index CAC 40 leaping nearly three percent.

On the economic front, the US private sector employment increased by 200,000 jobs from August to September, beating market consensus of 190,000, according to the September ADP National Employment Report Wednesday.

The ADP figure is watched closely as a pre-indicator for the non-farm payrolls report due Friday.

Shortly after the opening bell, the Dow Jones Industrial Average jumped 172.50 points, or 1.07 percent, to 16,221.63. The S&P 500 gained 23.45 points, or 1.24 percent, to 1,907.54. The Nasdaq Composite Index surged 68.53 points, or 1.52 percent, to 4,585.85.

On Tuesday, the US stocks closed mixed following the previous day’s plunge, as the International Monetary Fund warned of slower economic growth for commodity exporters over the 2015-2017 period.

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