AFP: Most Asian markets resumed their positive start to the year yesterday with Hong Kong extending its record run to 14 days while the euro held gains after the previous day’s jump.
Investors were once again provided a strong lead from Wall Street where all three main indexes advanced to new all-time highs, with energy firms riding a surge in oil prices.
Confidence across world markets is booming on the back of a healthy economic outlook and optimism about corporate profits heading into the latest earnings season.
In early trade Hong Kong rose 0.7 percent, supported by flows of cash from mainland Chinese investors attracted by cheaper valuations than at home. The rally has put the Hang Seng Index within two percent of its record high that was set in October 2007.
Shanghai rose 0.2 percent, an 11th successive gain, while Sydney and Seoul also each added 0.2 percent. Singapore climbed 0.5 percent and Taipei put on 0.7 percent.
However, Tokyo ended the morning session 0.1 percent lower on a stronger yen.
The Japanese unit has strengthened this week after the country’s central bank cut back on its bond-buying stimulus programme. The dollar fell towards 111 yen briefly Thursday, its lowest since November, with disappointing US factory gate inflation adding downward pressure.
The euro also ticked up against the greenback after minutes from the European Central Bank’s December board meeting showed members were considering altering their guidance on policy in light of the eurozone’s improving economy.
That suggests policymakers are leading towards winding in their own crisis-era stimulus programme, putting it on course to synchronise with the US Federal Reserve, which is already in the process of raising interest rates.
“The big picture is that any shift in communication, whether it happens in March or June or if it’s gradual or hawkish, now seems to be backed by the majority of the governing council, which didn’t seem to be the case in October,” Frederik Ducrozet, an economist at Banque Pictet & Cie in Geneva, told Bloomberg News.
The euro, which had eased slightly this week, bounced back above US$1.20 Thursday and was consolidating in Asia.
Stephen Innes, head of Asia-Pacific trading at OANDA, said in a note: “The ECB minutes caught traders flat-footed as most had shallow expectations from the release” of the minutes.
Oil prices saw small dips after their recent run-up, which saw Brent break the US$70 mark Thursday for the first time since late December 2014 thanks to plunging US stockpiles, unrest in key producer Iran and speculation about fresh sanctions on Tehran by the Trump administration.
Add commentComments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Hayleys Advantis Limited, the transportation and logistics arm of Hayleys PLC,won Gold at the recent
As organisations evolve dramatically to create and accommodate the ‘millennial workplace&rsquo
On the 18th of July 2018 at a press conference held at the OZO in Colombo, the Sri Lanka Gem & J