NEW YORK, May 30 (Reuters) - U.S.-listed shares of foreign companies rose on Thursday as investors bet that the Federal Reserve’s stimulus would remain intact, while Japanese stocks rebounded in New York trading.
Equities have been closely tethered to central bank monetary policy this year. A round of weak economic data in the United States was viewed as a sign that the economy continued to struggle, meaning that the Fed wouldn’t begin tapering its stimulus soon, as had been feared.
The BNY Mellon index of leading American depositary receipts rose 0.6 percent, while the S&P 500 advanced 0.5 percent. The BNY Mellon index of leading European ADRs gained 0.6 percent. The bank’s Latin American ADR index added 0.5 percent.
The BNY Mellon index of leading Asian ADRs climbed 0.7 percent, a sharp contract from weakness in Asian markets.
Japan’s Nikkei, which closed before the release of the U.S. data, shed 5.2 percent, far exceeding a 0.3 percent drop in Chinese shares.
While shares in Asia declined on concerns about less central bank stimulus, losses were wider in Japan following a Reuters report that the country’s public pension fund is considering a change to its portfolio strategy that could let its investment in domestic stocks grow with a rallying market.
According to sources familiar with the deliberations, the Government Pension Investment Fund could be forced to buy Japanese government bonds, as well as sell Japanese stocks in an equity market that has rallied more than 60 percent since November.
The most active Japanese ADRs rebounded in New York after falling on their local exchange. Sony Corp rose 3.8 percent to $20.86 while Toyota Motor shot up 0.8 percent to $120.56. Mitsubishi UFJ Financial Group climbed 1 percent to $6.05.