Asian markets build on blistering start to year

HONG KONG: Asian markets mostly rose yesterday, with Hong Kong marking 11 straight wins and Tokyo at a 26-year high, as investors press on with a global rally that has the region enjoy its best start since 2006.

Wall Street provided yet another record lead as eyes turn to the beginning of the corporate earnings season, with sentiment buoyed by strong economic readings and hopes that Donald Trump’s tax cuts will help fire up profits.

“This environment of strong global growth and contained inflation is actually a great environment for Asian equities, including tech,” Ajay Kapur, head of Asia Pacific and global emerging market strategy at Bank of America Merrill Lynch in Hong Kong, told Bloomberg TV.

Hong Kong rose 0.2 per cent, marking its best run of gains since October 2012, while Shanghai finished 0.1 per cent higher.

Tokyo closed up 0.6 per cent – at its highest close since November 1991 – as traders returned from a long weekend break.

Sydney rose 0.1 per cent and Singapore climbed 0.4 per cent.

There were also gains in Manila, Wellington and Kuala Lumpur but Wellington and Taipei slipped.

Seoul closed down 0.1 per cent hit by a more than three per cent drop in market heavyweight Samsung Electronics, which was hit after its forecast for record fourth-quarter profits missed expectations.

However, while markets continue to push ever higher, there are worries the advances this week could be petering out, and there are also warnings of a sharp correction on the horizon.

The dollar held on to its gains against the pound and euro, consolidating its recent mini-rebound with the single currency unable to make inroads despite data showing eurozone economic sentiment at its highest since 2000.

However, with Trump’s tax cuts already built in and the European Central Bank expected to begin winding down its stimulus, analysts say the greenback will likely face further pressure from the euro down the line.