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Asia markets extend rally as Hong Kong eyes record
HONG KONG, Jan 15, 2018 (BSS/AFP) – Asian traders continued their
blistering start to the year on Monday with most markets rising and Hong Kong
within spitting distance of its record high, while the euro extended its
gains against the dollar.
Wall Street once again provided a strong lead on the back of optimism
about corporate earnings in light of Donald Trump’s tax cuts as well as the
improving global economic outlook.
Hong Kong led the way in early business on Monday, rising for a record
15th straight session and a little more than 300 points short of its all-time
high of 31,958.41 hit in October 2007.
The Hang Seng Index has climbed more than seven percent, supported by the
broad global advance as well as a surge in mainland investors attracted by
relatively cheaper valuations compared with Shanghai and Shenzhen.
Among other markets Tokyo ended the morning session 0.2 percent higher
despite a stronger yen, with market heavyweight Softbank almost four percent
higher on reports it could list its mobile unit, raising up to $18 billion in
one of Japan’s biggest public offerings.
Shanghai was up 0.2 percent, Sydney gained 0.1 percent, Seoul was up 0.2
percent and Singapore added 0.4 percent. Taipei, Manila and Jakarta were all
higher though Wellington dipped slightly.
– ‘Unstoppable run’ –
“Investors continue basking in the afterglow of US tax reform assuming
there will be no end to this unstoppable run, which is now feeding off US
domestic economic strength and a stronger global growth narrative,” said
Stephen Innes, head of Asia-Pacific trading at OANDA.
“As we enter earnings season, the fear of missing out mindset takes hold,
but if the markets remain at this pace, we could breach my 2018 year-end
global stock market forecast before the end of February, which will for once
leave me honestly lost for words.”
The euro added to its gains against the dollar after hitting a three-year
high Friday on the back of news that Chancellor Angela Merkel’s CDU/CSU party
was close to a deal with the Social Democrats — Germany’s second biggest
party — to form a new coalition.
MORE/MR/ 1014 hrs.
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While some members of the Social Democrats were sceptical about the deal,
the breakthrough looked to have brought an end to months of uncertainty in
Europe’s biggest economy.
That came a day 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, suggesting it is leaning
towards winding down its crisis-era stimulus programme.
The euro was holding above $1.22 in Asia, having surged from around
$1.2060 on Friday.
The dollar was also struggling against the yen and pound as dealers
brushed aside improving US inflation data, while recent moves by the Bank of
Japan have fuelled speculation it is about to tighten monetary policy.
– Key figures around 0230 GMT –
Tokyo – Nikkei 225: UP 0.2 percent at 23,708.63 (break)
Hong Kong – Hang Seng: UP 0.9 percent at 31,683.94
Shanghai – Composite: UP 0.2 percent at 3,436.09
Euro/dollar: UP at $1.2208 from $1.2200 at 2140 GMT on Friday
Pound/dollar: UP at $1.3748 from $1.3737
Dollar/yen: DOWN at 110.66 yen from 110.98 yen
Oil – West Texas Intermediate: FLAT at $64.30 per barrel
Oil – Brent North Sea: DOWN 10 cents at $69.77 per barrel
New York – DOW: UP 0.9 percent at 25,803.19 (close)
London – FTSE 100: UP 0.2 percent at 7,778.64 (close)
BSS/AFP/MR/1014 hrs.