APAC markets follow Wall Street lead

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.

AFP

 

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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