[HONG KONG] Asian markets rallied on Friday, bringing a volatile week to a positive end as tech firms extended their rebound while investors tracked advances on Wall Street following reports Donald Trump is planning to unveil a big-spending public works plan.
Global equities have struggled this week, hit by profit-taking, fears over the progress of a probe into Russia’s US election meddling, stumbling Brexit talks and Trump’s recognition of Jerusalem as Israel’s capital.
The issues had overshadowed news that Senators had passed a market-friendly US tax overhaul bill and were preparing to hammer out a compromise with the House of Representatives.
Traders were given a positive lead from New York, where all three main indexes ended higher, with reports saying the president hopes to present an infrastructure plan to Congress early next month.
Mr Trump’s promises of tax cuts, US$1 trillion in infrastructure spending and deregulation helped spur a global equities and dollar rally after his election as investors bet they would fire up the already healthy economy.
“While the US economy is booming, President Trump’s long-standing pledge may be upon us as infrastructure spending at both a federal and state could be a real game-changer for the dollar,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
He forecast an upsurge in business investment, as a result, could “propel the US economy to four percent growth”.