Asia markets rally as investors shrug off nerves

08-Nov-2017 Intellasia | AFP | 6:00 AM Print This Post

Asian markets rose Tuesday, tracking records on Wall Street as investors appeared to shrug off nervousness over tensions on the Korean peninsula, with US President Donald Trump visiting Seoul.

US stocks hit fresh highs for the second straight day while London’s FTSE 100 also powered to a new record close.

The positive trend continued in Asia, where markets edged up despite concerns that Trump’s two-day visit to South Korea would raise tensions with Pyongyang or trigger further weapons tests by the nuclear-armed regime.

Trump has traded military threats and insults with North Korea’s leader Kim Jong-Un, dubbing him “Rocket Man” and prompting an unusually personal rebuke in return, with Pyongyang calling him a “mentally deranged US dotard”.

Trump’s angry outbursts about Japan and China engaging in “unfair” trade practices have also sparked worry among exporters, as the US leader continues to push for an end to the “massive trade deficit” with foreign countries.

Tokyo and Singapore were up 0.8 percent while Hong Kong gained one percent. Shanghai rose 0.5 percent but Seoul lost 0.3 percent.

Chip-related shares were broadly higher after Broadcom launched a $130 billion unsolicited bid for rival chip manufacturer Qualcomm in a cash and stock offer.

Renesas Electronics rose 1.61 percent to 1,449 yen while chipmaker Rohm gained 1.22 percent to 11,550 yen.

– Oil on the rise -

Sydney briefly broke above 6,000 points for the first time since the 2008 global financial crisis, signalling investor optimism about economic recovery as central banks begin to wind back their stimulus packages.

Australian mining stocks rose on the back of improving oil and iron ore prices.

Crude prices hit a two-year high last week and rose overnight, due to growing global demand as OPEC leads efforts to limit supply.

Traders are keeping a close eye on oil-rich Saudi Arabia, where a sweeping crackdown has seen princes, ministers as well as billionaire tycoon Al-Waleed bin Talal arrested on corruption allegations.

Tensions have also surged between the kingdom and Iran as Riyadh said an intercepted missile attack on the country, allegedly by Tehran-backed rebels in Yemen, “may amount to an act of war”.

Tehran in turn accused Riyadh of committing war crimes in Yemen, where Sunni-ruled Saudi Arabia and predominantly Shiite Iran back opposing sides.

“Oil prices soared overnight as the Saudi corruption purge and coincident face-off with Iran have combined to increase geopolitical risk and cause some traders to consider a possible and material supply disruption for the first time in years,” said Greg McKenna, chief market strategist at AxiTrader.

“It’s not just the purge, it’s concerns about the Kingdom’s stability and tensions with Iran.”

– Key figures around 0300 GMT -

TokyoNikkei 225: UP 0.8 percent at 22,733.68 (break)

Hong KongHang Seng: UP one percent at 28870.59

ShanghaiComposite: UP 0.5 percent at 3404.38

euro/dollar: DOWN at $1.1609 from $1.1614 at 2100 GMT

Pound/dollar: DOWN at $1.3172 from $1.3175

Dollar/yen: UP at 113.87 from 113.71 yen

OilWest Texas Intermediate: DOWN five cents at $57.30 per barrel

OilBrent North Sea: DOWN 11 cents at $64.16 per barrel

New YorkDOW: UP 0.1 percent at 23,548.42 (close)

LondonFTSE 100: UP 0.03 percent at 7,562.28 points (close)–finance.html


Category: FinanceAsia

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