Asian Stocks More Composed As US Dollar Hangs On
- Asian stocks bounced back a little on Tuesday
- A modest rise for the US Dollar probably helped
- Gold and oil prices were steady
Asian stocks found some composure on a Tuesday of scant local economic news. They slipped with global markets the session before on worries about the legislative prowess of the US Administration in the wake of last week’s pulling of a key healthcare bill.
The US Dollar managed some Tuesday gains, too, which always tends to buoy the region’s plentiful export stocks. That said the backdrop was far-from constructive with the Dow Jones Industrial Average logging an eighth straight losing session on Monday- its longest downward lurch since 2011.
Still, the Nikkei 225 managed to close up 1.14%, with Australia’s ASX up 1.3% as commodity and energy prices also inched up. Hong Kong stocks were content to follow the region higher, but mainland Chinese bourses found the going tougher as liquidity concerns continue to swirl.
While equity markets clearly find the sight of the greenback getting up off the canvas agreeable, some perspective is surely appropriate. The US Dollar edged up a bare 0.1%, having hit its lowest level since November 11 -98.858- in Monday’s North American session.
Elsewhere, crude oil prices inched up about 20 cents, for both the US benchmark and Brent. However, worries about an ongoing and perhaps deepening supply glut are keeping the bulls in check as yet more key inventory data loom. Gold prices were steady, around $1253/ounce. Investors are now looking to see whether US President Donald Trump can enact promised tax cuts and infrastructure spending in the wake of the healthcare bill’s withdrawal.
There’s plenty left on the global data schedule even as Asian trade wraps up. The US bill will be topped by trade-balance and consumer confidence numbers, with the Case Shiller House Price Index as support act. European Central Bank board member Benoit Coeure will speak in Frankfurt, with Canadian central bank chief Stephen Poloz scheduled to talk in Oshawa, Ontario.
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--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter: @DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.