Most Asian markets extended their winning streak Tuesday, taking a lead from fresh records on Wall Street where a long-awaited tax-cut bill is expected to be passed by US lawmakers this week.
After months of uncertainty, the controversial fiscal reforms are due to be voted on in the next few days and could be on Donald Trump’s desk before the end of the year, giving the embattled president his first major legislative victory.
“Equity markets have started the week in an extremely enthusiastic manner anticipating tax reform holiday cheer,” Stephen Innes, head of Asia-Pacific trading at OANDA, said.
“There’s a definite buzz on the street as we approach the finishing line as there are few if any signs of buyer fatigue.”
All three main indexes on Wall Street ended at their highest levels for a second successive day and those advances filtered through to Asia.
Hong Kong added 0.7 percent and Shanghai gained 0.4 percent while Sydney put on 0.6 percent and Singapore edged up 0.1 percent.
Tokyo ended the morning slightly higher after jumping 1.6 percent on Monday on the back of a pick-up in the dollar against the yen. Wellington and Taipei were also higher.