Business: Asian shares shrug off Wall St. weakness, dollar steadies

Asian shares shrug off Wall St. weakness, dollar steadies Discover Thomson ReutersFinancialGovernment SolutionsLegalReuters News AgencyRisk ...

Asian shares shrug off Wall St. weakness, dollar steadies

Discover Thomson ReutersFinancialGovernment SolutionsLegalReuters News AgencyRisk Management SolutionsTax & AccountingBlog: Answers OnInnovation @ Thomson ReutersDirectory of sitesLoginContactSupport#Business NewsOctober 10, 2017 / 12:55 AM / in 2 hoursAsian shares shrug off Wall St. weakness, dollar steadies

5 Min Read

FILE PHOTO: People walk past an electronic stock quotation board outside a brokerage in Tokyo, Japan, September 22, 2017. REUTERS/Toru Hanai

TOKYO (Reuters) - Asian shares rose on Tuesday, shrugging off modest losses on Wall Street, while expectations of another U.S. interest rate increase this year continued to underpin the dollar.

Futures suggested a more subdued start to the European trading day, with the Eurostoxx 50 and Germany’s Dax futures both down 0.1 percent. France’s Cac futures and FTSE futures were both slightly lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.6 percent.

Japan’s Nikkei stock index reversed early losses and finished 0.6 percent higher, as markets reopened after a public holiday on Monday.

China stocks retreated from the previous session’s 21-month highs as investors took profits on recent gainers and awaited third-quarter economic data and earnings reports. The bluechip CSI300 index fell 0.3 percent while the Shanghai Composite Index was down 0.1 percent.

China’s Statistics Bureau on Tuesday said that the country will have no problem meeting its economic growth target of around 6.5 percent this year, and may even beat it. Such an outcome had been widely expected after a robust start to the year.

Offshore Chinese yuan surged to its strongest levels in more than two-weeks, after the central bank set a firmer-than-expected official fix on Tuesday. The move suggests that the authorities are trying to stabil ize the currency ahead of next week’s key national leadership meeting.

Korean shares rallied 1.6 percent on their first day of trading this month, as tech shares led by Samsung Electronics Co Ltd caught up with gains made by global stock markets after a long break.

Seoul markets were closed last week and on Monday for public holidays.

“Global stock markets marked strong gains while Seoul markets were off, and the price of semiconductors continued to rally,” said Lee Seung-woo, a stock analyst at Eugene Investment & Securities.

Tensions on the Korean peninsula continued. Russian Foreign Minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson in a phone call on Monday that an escalation was unacceptable.

Russia and China both called for restraint on North Korea on Monday after U.S. President Donald Trump warned over the weekend that “only one thing will work” in dealing with Pyongyang, hinting that military action was on his mind.

Investors were particularly wary on Tuesday, when Pyongyang celebrated the founding of its ruling party, which loomed over other market factors.

“We are expecting a December Fed rate hike, so we are expecting the trend to be dollar strength and yen depreciation, though whenever North Korean risks rise, that pushes down the dollar,” said Harumi Taguchi, principal economist at IHS Markit in Tokyo.

Interest rate futures are now pricing in nearly a 90 percent chance that the U.S. Federal Reserve will rise rates again in December.

The dollar was steady on the day against its Japanese counterpart at 112.67 yen. On Friday, it had risen as high as 113.44 yen, its highest level since July 14.

The perceived safe-haven yen typically rises when investors try to reduce their risk exposure because the currency is often used as a funding source to buy riskier, higher-yielding assets.

Japan is also the world’s largest net creditor nation, and at times of uncertainty, traders assume Japanese investors’ repatriation from foreign countries will outweigh foreign investors’ selling of Japanese assets.

The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.2 percent to 93.533, moving away from Friday’s peak of 94.267. That was its loftiest level since July 20, after data showed a stronger-than-forecast increase in U.S. average hourly earnings in September.

The euro added 0.3 percent to $1.1770, after it got a lift on Monday from data showing German industrial output notched its biggest monthly increase in more than six years in August.

Also helping the euro were comments from a European Central Bank Executive Board member, who called for the central bank to reduce its asset purchases next year. The ECB is due to decide on Oct. 26 whether to continue its bond buying in 2018.

Crude oil prices edged slightly higher, underpinned by OPEC comments signaling the possibility of continued action to restore market balance in the long-term.

But gains were seen as limited as oil production platforms in the Gulf of Mexico started returning to service after the latest U.S. hurricane forced the shutdown of more than 90 percent of crude output in the area.

Brent crude inched up 1 cent to $55.80 a barrel. U.S. crude added 2 cents to $49.60.

Gold prices hit their highest in more than a week, though gains were capped as expectations of another Fed rate hike this year supported the dollar. Spot gold added 0.2 percent to $1,286.52 an ounce.

Additional reporting by Dahee Kim and Joyce Lee in Seoul; Editing by Sam Holmes and Kim Coghill

Our Standards:The Thomson Reuters Trust Principles.0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser -and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below
Source: Google News

COMMENTS

Name

Business,164,Entertainment,174,Health,129,Science,144,Sports,148,Technology,112,Update,114,USA,193,World,197,
ltr
item
Netizen 24 USA: Business: Asian shares shrug off Wall St. weakness, dollar steadies
Business: Asian shares shrug off Wall St. weakness, dollar steadies
Netizen 24 USA
http://www.netizen24.com/2017/10/business-asian-shares-shrug-off-wall-st.html
http://www.netizen24.com/
http://www.netizen24.com/
http://www.netizen24.com/2017/10/business-asian-shares-shrug-off-wall-st.html
true
5079521174215534427
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy