Most Asian markets up but dollar slips
HONG Kong led gains in most Asian markets yesterday after officials announced the start of a long-awaited link-up with Shenzhen, but the dollar retreated against most peers after its recent surge.
Officials last week announced that the tie-up between the Hong Kong and Shenzhen markets would start on December 5.
The scheme will give Hong Kong traders access to the mainland’s second stock exchange, the world’s eighth -largest with a market capitalisation of US$3.3 trillion as of September.
The city’s Hang Seng Index finished up 0.5 percent, though Shenzhen slipped 0.1pc by the close. Shanghai ended up 0.5pc.
Most other regional stock markets were up, extending last week’s gains on bets that Donald Trump’s spending plans would boost US economic growth.
Seoul rose 0.2pc, Singapore added 0.8pc and Wellington added 0.1pc, but Sydney dipped 0.8pc.
Tokyo shed 0.1pc after a sevenday winning run that took it to an 11-month high. Exporters were hit by a slight recovery in the yen against the dollar.
The greenback has come off recent highs touched last week – fuelled by bets on a US interest rate rise in December – as traders take a breather.
The dollar tumbled to 111.96 yen, having almost hit 114 yen at the end of last week, while higher-yielding currencies also made inroads.
The Australian dollar, the South Korean won, the Indonesian rupiah and the Mexican peso were sharply up on the US unit.
“With the dollar rally pausing for a breath, we are seeing long dollar positions getting closed out,” Khoon Goh, head of regional research at Australia & New Zealand Banking Group, said. –