Asian Markets Struggle, But Dollar Rally Lifts Tokyo
Fahad Shabbir (@FahadShabbir) Published November 24, 2016 | 11:35 AM
HONG KONG, (UrduPoint / Pakistan Point News - 24th Nov, 2016 ) : The Dollar barrelled ever higher Thursday, sitting at an eight-month high against the Yen and fuelling another rally in Tokyo stocks but most other markets turned negative on profit-taking.
US investors gave their Asian colleagues another strong lead with the Dow hitting a new record on Wall Street after fresh data showed further improvement in the US economy and reinforced expectations for an interest rate hike next month.
Global markets have largely been piling higher since Donald Trump's shock election win two weeks ago, with traders betting his big spending, high tax plans will bolster an already healthy economy.
However, there are concerns among emerging market governments that his threats to tear up global trade deals could lead to an era of protectionism and throw up huge US tariffs. "There's a favourable bias to equities, given the expectations post Trump's election that US growth will pick up as a result of more fiscal spending and a reduction in corporate tax rates," Chris Green, director of economics and strategy at First NZ Capital Group in Auckland, told Bloomberg news.
The near certainty that Trump's policies will fuel inflation, forcing the Federal Reserve to lift rates, has pushed the dollar higher. On Thursday it headed towards the 113 yen mark for the first time since April -- touching 112.97 yen before easing -- while it was also sharply up against most other units.
The tumbling yen lifted exporters on Tokyo's Nikkei index, which was 1.1 percent higher as it reopened after a day's holiday. - 'Great shape' - ================= But elsewhere traders were less enthusiastic to extend recent gains.
Hong Kong fell 0.4 percent, Sydney lost 0.1 percent and Seoul was off 0.7 percent. Singapore shed 0.2 percent and Taipei slipped 0.
1 percent. Shanghai was 0.1 percent higher. Minutes from the Federal Reserve policy meeting this month showed most board members thought a rate hike would be appropriate "relatively soon".
And those thoughts were backed up by figures showing a surge in durable goods orders. "The US economy is showing all the signs of being in great shape even before the addition of any Trump stimulus," AxiTrader chief market strategist Greg McKenna said in a note.
High-yielding Asia-Pacific currencies took a beating as investors removed their cash to seek out better returns in the US. South Korea's won fell 0.5 percent and the Australian dollar slipped 0.7 percent while there were also sharp losses for the Indonesian rupiah, Thai Baht, New Zealand dollar and Malaysian Ringgit.
The greenback broke above 50 Philippine pesos for the first time since 2008 at the height of the financial crisis. Oil prices were mixed owing to the strong dollar and unease about the chances of success for a deal within OPEC and with Russia on cutting output, with less than a week until its twice-yearly meeting.
Gold was also taking a beating, sinking more than two percent to nine-month lows around $1,185 as it succumbs to a flight from safe-haven assets. - Key figures around 0400 GMT - =============================== Tokyo - Nikkei 225: UP 1.1 percent at 18,361.50 Hong Kong - Hang Seng: DOWN 0.4 percent at 22597.88 (break) Shanghai - Composite: UP 0.1 percent at 3,244.21 (break) Euro/dollar: DOWN at $1.0536 from $1.0551 Wednesday Dollar/yen: UP at 112.70 yen from 112.48 yen Pound/dollar: DOWN at $1.2432 from $1.2438 Oil - West Texas Intermediate: FLAT at $47.96 a barrel Oil - Brent North Sea: DOWN three cents at $48.92 New York - Dow: UP 0.3 percent at 19,083.18 (close) London - FTSE 100: DOWN less than 0.1 percent at 6,817.71 (close)
Related Topics
Recent Stories
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
Osaka seals first win on clay since 2022 in Madrid
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
TikTok to fight US ban law in courts
More Stories From Business
-
Mired in crisis, Boeing reports another loss
6 hours ago -
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
7 hours ago -
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
7 hours ago -
European stocks lose momentum after global rally
7 hours ago -
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
8 hours ago -
CEO KP-EZDMC meets CRBC officials
8 hours ago
-
Pakistan among nine poor countries that produces 90 percent cigarettes for world
9 hours ago -
Chief Minister Gilgit Baltistan Haji Gulbar Khan calls on Minister for Privatisation
9 hours ago -
Germany nudges up growth forecast, ailing economy at 'turning point'
9 hours ago -
Revised UAF budget recommended
9 hours ago -
IDEA, TEVTA organizes Job Fair for youth
9 hours ago -
Massive financial, administrative scam unearthed at SCCI
10 hours ago