Asian stocks at 19-month highs on robust Wall Street

HONG KONG - Asian stocks edged up to fresh 19-month highs on Thursday, helped by an extended rally on Wall Street and strong US data though the dollar stepped back after a recent bounce.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, rising to its highest since July 2015. It is up by a tenth so far this year partly underpinned by more optimistic earnings expectations and a gradual unwinding of bearish emerging market bets.

Australian stocks advanced 0.4 percent in early deals with looming jobs data the key event risk on the day. A strong showing would set the market up for further gains with technical indicators helping.

"The index has now closed above the key technical resistance level at 5,800 which is a bullish sign opening up further gains in the coming months back towards 6,000," said James Woods, global investment analyst at Rivkin Securities in Sydney.

The Australian employment data is due at 00:30 GMT with market expectations centering around 10,000 jobs being created.

Wall Street pushed further into record-high territory on Wednesday, with the S&P 500 notching a seven-session winning streak, helped by robust economic data and optimism that President Donald Trump will cut corporate taxes.

That optimism was not shared in the currency markets with the dollar's recent bounce running out of steam as investors took profits even as fresh data showed a pick up in inflationary pressures.

US consumer prices recorded their biggest increase in nearly four years in January, backing expectations for the Federal Reserve to raise interest rates at a steady pace over the course of the year.

Fed Chair Janet Yellen, in her second day of economic testimony before Congress, offered no additional insight on the timing of the central bank's next rate hike after her comments a day earlier had hinted at a fairly hawkish policy stance.

Traders may also be leaning towards a rate increase delayed beyond the Fed's March meeting, with the futures markets only pricing a 27 percent chance of a tightening next month.

The dollar index, which measures the currency against a trade-weighted basket of six major peers, slipped to 101.02. It rallied to a one-month high of 101.76 on Wednesday.

In commodity markets, oil prices softened as record high U.S. crude and gasoline inventories fed concerns about a global glut. U.S. crude was down 0.15 percent at $53.03 a barrel and Brent was flat at $55.75 a barrel.

source: news.abs-cbn.com

Asian stocks edge higher on Wall Street cues; oil up

HONG KONG - Asian stocks edged higher on Thursday, underpinned by a firm Wall Street after minutes from the Federal Reserve's December meeting suggested a less hawkish stance from policymakers.

Oil prices rose on expectations of drops in US inventories.

MSCI's broadest index of Asia-Pacific stocks outside Japan gained 0.2 percent, on track for a eighth consecutive session of gains. Early Asian markets such as Australia rose 0.4 percent.

"The FOMC dot plots project three interest rate hikes in 2017 however the market is less optimistic with Fed Fund futures pricing in two hikes," said James Woods, global investment strategist at Rivkin Securities in Sydney.

"The market will now focus on Trump's first 100 days where he sets the tone for his presidency and whether or not he will be able to implement his policies."

The Dow Jones Industrial Average rose 0.3 percent to end at 19,942.16 and the S&P 500 gained 0.57 percent to 2,270.75 after minutes showed most Federal Reserve policymakers thought the economy could grow more quickly because of fiscal stimulus under the Trump administration.

The FOMC minutes noted upside risk to growth forecasts and uncertainty over the level of fiscal stimulus, while some members warned that the tighter labor market could signal a more aggressive path of rate increases.

In currencies, the dollar briefly stumbled after policymakers noted extended gains in the greenback would weigh on inflation though it managed to pare losses by the end of a choppy US session.

The dollar was trading around the 117 handle against the Japanese yen while it edged lower against the euro .

China's offshore yuan was the only notable exception with the currency posting its biggest daily gain against the dollar in a year.

Oil managed to hold on to Wednesday's chunky gains on expectations US oil inventories have dropped and on signs that the world's top oil exporters will stick to agreed output cuts that took effect this week. Crude futures rose 0.2 percent.

source: news.abs-cbn.com