Asian Share push higher on buoyant risk sentiment

Markets in Asia opened higher on Monday, just hours after the polls closed in France and showed a decisive victory by the centrist presidential candidate Emmanuel Macron.

Japan’s Nikkei 225 rose about 1.8 percent in the first hour of trading, and the yen’s value remained about the same, at 112.75 to the dollar. Australian shares bumped up slightly as well, with the S.&P./ASX200 index rising about 0.65 percent early on. China was an outlier; stocks in Shanghai dipped, with the SSEC and CSI3000 indexes falling about 0.4 percent at the open.

Shares in South Korea rose about 0.55 percent in the morning. That country’s presidential election — held after the impeachment of former President Park Geun-hye — will be on Tuesday.

Markets in Asia were also reacting to a strong jobs report in the United States on Friday, which suggested the global economy was on solid footing even as it reinforced the case for the United States Federal Reserve to continue building on recent interest rate increases.

Currency traders in Asia said a muted euro movement meant markets appeared to have priced in the Macron victory already. But the upcoming election in South Korea was still a source of uncertainty.

“The election seems to be on won investors’ minds, and the possible implications that may or may not have with U.S. and China relations,” Stephen Innes, a senior trader in Singapore  Oanda, said in a text message.

The New York Times

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes