Asian stocks near 2- year highs as euro steadies

Risk appetite returns following French presidential election

Asian equities approached two- year highs on Tuesday, buoyed by a jump in risk appetite following the centrist victory in the first round of the French presidential election that also lifted the euro and pressured safe- haven assets.

The Canadian dollar slid after the US announced new duties averaging 20 percent on Canadian softwood lumber imports. The US dollar strengthened 0.4 percent to C$ 1.3549.

France’s CAC 40, which rallied more than 4 percent on Monday, was up 0.1 percent.

MSCI’s broadest index of Asia- Pacific shares outside Japan rose 0.6 percent, hovering near the highest level since June 2015 hit earlier in the session, on its fourth straight day of gains.

“Asian markets appear to be still lingering in the glow of relief after the French election,” said Pan Jingyi, market strategist at IG in Singapore.

“The jubilance in markets overnight has also added to the optimism,” Pan noted.

Japan’s Nikkei rose more than 1 percent to a three- week high. South Korea’s KOSPI also advanced 0.7 percent to its highest level since April 2015.

Indonesian stocks opened at an alltime high, and Malaysian stocks hit their highest level since May 2015. Australia and New Zealand are closed for the Anzac Day holiday.

“The risk- on sentiment is resulting in foreign inflows into Asia supporting asset prices, and investors are putting North Korean tensions to one side for now,” said Khoon Goh, head of Asia research at Australia and New Zealand Banking Group.

Polls show Emmanuel Macron defeating anti- euro nationalist Marine Le Pen by as much as 30 percentage points in the second round of the French presidential election, scheduled to take place in two weeks.

Overnight, the MSCI World Index surged 1.6 percent to touch an all- time high, and holding near that level on Tuesday.

The euro was steady at $ 1.08645, retaining most of Monday’s 1.3 percent gain. On Monday, it posted its strongest one- day performance in 10.5 months, which lifted the common currency to a 5.5- month high.

The dollar advanced 0.3 percent to 110.05 yen on Tuesday, extending Monday’s 0.5 percent jump as investors sold off the safe- haven yen.