Asia mar­kets rise again af­ter Wall Street record

> In­vestors bet on short-term bump from Trump’s plans

The Sun (Malaysia) - - SUNBIZ -

HONG KONG: Asian mar­kets rose again yes­ter­day, track­ing an­other record close on Wall Street, while the dol­lar ex­tended its march against the yen on ex­pec­ta­tions of a US in­ter­est rate hike.

The Dow ended above 19,000 for the first time on Tues­day as US traders, while still un­cer­tain about the long term, bet on a near-term bump for the world’s top econ­omy from Don­ald Trump’s growth plans.

In­vestors are bet­ting a Trump ad­min­is­tra­tion will cut taxes, ramp up in­fra­struc­ture spend­ing and slash reg­u­la­tions, all of which would likely fan in­fla­tion, in turn putting pres­sure on the Fed­eral Re­serve to hike in­ter­est rates.

“Bulls have got con­trol here and US equity and many other de­vel­oped mar­kets are go­ing higher, at least in the short term,” said Chris We­ston, chief mar­kets an­a­lyst in Mel­bourne at IG Ltd, in an e-mail.

“The Fed has been guid­ing mar­ket par­tic­i­pants to be­lieve they al­ways wanted a hike in De­cem­ber, they just needed a lit­tle more in­for­ma­tion be­fore in­creas­ing rates and now they have more than enough in­for­ma­tion to con­vince them.”

Hong Kong’s Hang Seng In­dex rose 0.5%, Syd­ney put on 0.9%, Shang­hai added 0.4% and Seoul gained 0.3%. Sin­ga­pore, Taipei and Welling­ton were also sharply higher. Tokyo was closed for a pub­lic hol­i­day.

The Fed was due to re­lease min­utes later yes­ter­day of its most re­cent pol­icy meet­ing, and while it will be pored over for clues about its fu­ture rate plans, traders are all but cer­tain it will lift costs in De­cem­ber.

On Tues­day, it hit a seven-month high of ¥111.36 (RM4.475) be­fore eas­ing slightly.

“I would ex­pect the dips to re­main shal­low as the dol­lar should re­main king of the hill as the mar­ket’s ap­petite for green­backs re­mains solid,” Stephen Innes, se­nior trader at OANDA, said.

On oil mar­kets, both main con­tracts were slightly higher af­ter a flat ses­sion on Tues­day but traders are now grow­ing cau­tious over the out­look for an OpecRus­sia deal to cut out­put, with Iran and Iraq drag­ging their feet. – AFP

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