- MSCI’s index of Asia-Pacific shares nears the 20-month top, Japan’s NIKKEI rises to the highest since September 2018.
- The US-led optimism pleases equity traders in Asia.
- Geopolitical tensions emanating from the Middle East gain a little attention as the US markets are off.
Following Wall Street’s notable gains on Friday, Asian stocks extend their northward trajectory ahead of Monday’s European session. In doing so, MSCI’s gauge of leading Asia-Pacific equities, except for Japan, near 714.00 to revisit the early 2018 tops whereas Japan’s NIKKEI gains 0.20% to 24,095 to mark 15-month high.
Traders seem to shrug off early-day advances in oil prices that benefited from the likely supply outage in Libya and Iraq due to geopolitical reasons. This could be attributed to the absence of the US traders as well as a lack of major data/events during the Asian session. The People’s Bank of China (PBOC) announced no change in its Loan Prime Rate (LPR) while Japan’s November month Industrial Production also marked fewer changes.
With this, Chinese equities remain mildly bid while Hong Kong’s HANG SENG declines on fresh news of violence. Further, Australia’s ASX 200 rushed to record highs, +0.22% to 7,080, but New Zealand’s NZX 50 fails to lure buyers amid a close in markets at Wellington.
Markets in India portray worries of a likely decline in tax revenue collection, with the headlines BSE SENSEX losing 0.5% to 41,740, whereas South Korea’s KOSPI benefits from leadership changes into the industry heavyweight Samsung Electronics.
Bond markets are showing no major changes as the US traders are off due to the Martin Luther King’s Birthday whereas S&P 500 Futures mark 0.03% gains while flashing 3,325 as a quote. Investors will have little clues looking forward except for the German Buba monthly report and PPI data. However, headlines from the World Economic Forum (WEF) gathering in Davos could offer intermediate moves to the markets.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.