Asian Stocks Set to Rebound After US Advance: Markets Wrap

02-Dec-2017 Intellasia | Bloomberg | 6:00 AM Print This Post

Asian stocks look like starting the last month of 2017 on an upbeat note, buoyed by record highs in US equities after the tax bill got crucial backing in the Senate and technology stocks rebounded. The dollar pared a decline as the yen tumbled.

Equity-index futures were higher in Japan, Australia and Hong Kong. The Dow Jones Industrial Average climbed past 24,000 after John McCain backed the Senate tax bill, and the S&P 500 Index capped its longest monthly winning streak since 2007. Treasuries extended their slide, with the 10-year yield breaking above 2.4 percent. The euro and pound strengthened as Brexit negotiators moved closer to a divorce agreement.

McCain’s backing of the tax bill prompted optimism on its prospects as it’s headed for a marathon debate on the Senate floor with the aim of a final vote by the end of the week. Progress on the US tax overhaul would give yet another impetus to an equity bull run into the final weeks of the year that has been fueled by optimism on earnings and economic growth throughout 2017, lifting shares to all-time highs.

Investors will be sifting through key data in Asia on Friday. China’s Caixin manufacturing PMI may slide to 50.9 for November from 51, reflecting credit curbs, the slowing property market, and tighter environmental rules. Japan’s core inflation probably picked up to 0.8 percent in October, lifted by a weaker yen and higher oil prices. Still, the headline rate is forecast to slow to 0.2 percent, and 2017′s gain will be about half the Bank of Japan’s 2 percent target, according to Bloomberg Intelligence. South Korea’s November headline inflation is expected to be unchanged, while the revised third-quarter gross domestic product should be in line with the initial reading.

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In the US, figures showed US consumer spending settled back in October to a still-decent pace after the biggest increase since 2009, as a post-storm surge in auto sales cooled. Incomes remained robust and inflation showed progress toward the Federal Reserve’s goal. Treasuries sank, driving the benchmark 10-year yield to the highest in a month.

Oil posted its longest streak of monthly gains since early 2016 after an OPEC-led coalition of major crude producers followed through on a long-awaited extension of supply cuts.

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Here are some key events for the remainder of this week:

Manufacturing in the US probably remained robust in November. The Institute for Supply Management’s index, out Friday, is settling back to a more sustainable pace after climbing to a 13-year high two months earlier in the aftermath of Hurricane Harvey.

St. Louis Fed President James Bullard and Dallas Fed President Robert Kaplan are scheduled to speak.

These are the main moves in markets:


Futures on the Nikkei 225 Stock Average rose 0.7 percent in Singapore and were 0.4 percent higher on Australia’s S&P/ASX 200 Index. They rose 0.2 percent on Hong Kong’s Hang Seng Index.

The S&P 500 Index rose 0.8 percent to a record at the close in New York.

The MSCI Emerging Market Index dipped 1.8 percent, the most since May.


The Bloomberg Dollar Spot Index was little changed.

The yen slipped 0.5 percent to 112.54 per dollar.

The euro increased 0.5 percent to $1.1904.

The British pound rose 0.9 percent to $1.3525, the strongest in more than two months.


The yield on 10-year Treasuries rose two basis points to 2.41 percent.


West Texas Intermediate was little changed at $57.42 a barrel.

Gold declined 0.7 percent to $1,277.20 an ounce.


Category: FinanceAsia

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