Tokyo spearheads Asian market gains
> Euro extends advance after Catalonian leader calls for talks with Madrid
HONG KONG: Japan’s main stock index finished at its highest in more than two decades yesterday, leading broad gains across Asian equities following another record Wall Street close.
The rally came as the euro extended gains after Catalonia’s leader stepped back from the brink in a standoff with Spain over independence, though analysts warned of uncertainty in one of the eurozone’s biggest economies.
Tokyo’s Nikkei 225 index finished the day 0.3% higher at 20,881.27 – its best finish since December 1996, the year Prince Charles and Diana divorced, Bill Clinton won his second term as US president and Nintendo launched its Pokemon brand.
Japan’s corporates have enjoyed bumper profits and the economy is enjoying its best growth spurt for years, while equities have also been supported by a global rally that has seen Wall Street chalk up several record finishes in recent weeks.
Several other markets in the region are also sitting at multi-year highs, helped by hopes that US President Donald Trump’s proposed big-spending and tax-cutting promises will be implemented and fire up the world economy.
The Nikkei has rebounded from below the 15,000 mark in June last year after Britain’s vote to exit the European Union pummelled world markets.
Sydney ended 0.6% higher, Seoul jumped 1% and Shanghai put on 0.2%. Taipei put on more than 1% but Hong Kong sank 0.4%.
In early European trade, London and Frankfurt each rose 0.1% while Paris was flat. Madrid jumped 1.6%.
On foreign exchanges the euro built on Tuesday’s advances after Catalonia’s leader Carles Puigdemont signed a declaration of independence but suspended it in a speech that called for talks to resolve Spain’s worst crisis in decades.
The single currency has come under strain since Catalans voted in an unofficial referendum on Oct 1 to break away from Madrid.
The euro broke back above US$1.18 for the first time since the day after the vote. In Asia it pushed on, buying US$1.1830 after having wallowed near US$1.1700 on Friday. However, it is still down two cents from its recent highs last month.
The greenback was also facing pressure as investors fret over Trump’s tax reform plans. Some fear his rows with various senators could derail an agenda that has helped propel a dollar rally in recent weeks. – AFP