Asian shares hit ten-year highs

Business Tuesday 07/November/2017 18:33 PM
By: Times News Service
Asian shares hit ten-year highs

Tokyo: Asian shares rallied to their highest in a decade and Japan's Nikkei climbed to its best close since 1992 on Tuesday, while oil prices held most of their gains a day after surging to more than two-year peaks.
Futures hinted at solid openings for European bourses, with European stock futures, Dax futures and FTSE futures and CAC futures each up 0.3 per cent.
MSCI's broadest index of Asia-Pacific shares outside Japan extended early gains, rising 0.7 per cent to its loftiest peak since November 2007. The index got a bump higher after all three major US equity indexes closed at record highs overnight.
Japan's Nikkei reversed early losses and finished 1.7 per cent higher, on expectations of strong earnings from Japanese companies.
"Foreign investors who were underweight on Japanese stocks in the summer are raising their investment stances to neutral and even overweight," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
Australia's S&P/ASX 200 index jumped 1 per cent to a nearly 10-year high, bolstered by strong commodities prices. Australia's central bank held rates at record lows for a 14th straight policy meeting on Tuesday as expected, and signalled it would stay sidelined for months to come amid stubbornly low inflation.
US crude shed 11 cents to $57.24 after breaking above $56 a barrel for the first time in more than two years overnight. Brent crude futures were down 7 cents at $64.20.
The dollar index, which tracks the greenback against a basket of six major currencies, added 0.1 per cent to 94.847 .
Against the yen, the dollar rose 0.4 per cent to 114.12 but remained below its eight-month high of 114.737 marked in the previous session. The euro edged down 0.1 per cent to $1.1597.
Lower US yields have also weighed on the dollar, though they rose on Tuesday in line with buoyant equity markets.
The benchmark 10-year yield was at 2.328 per cent in Asian trading compared to 2.320 per cent, its U.S. close on Monday, when it plumbed its lowest levels in two weeks. It was at a seven-month high of 2.47 per cent as recently as late October. The lack of clarity on the progress of US tax reform as well as leadership at the US central bank has clouded the dollar's outlook and kept it off its recent highs.
Tax negotiators in the US House of Representatives will seek to overcome their differences this week and work on a plan, aiming for their self-imposed deadline of passage this month.
The Federal Reserve confirmed on Monday that influential monetary policymaker William Dudley plans to retire by mid-2018, leaving the leadership of the US central bank unusually open.
Spot gold was down 0.2 per cent at $1,278.65 per ounce after gaining nearly one percent in the previous session, easing in line with firmer Asian equities markets.