- Asian stocks rose as the global relief rally went on
- There was little local data to change the story either way, so investors went with Wall Street’s strong lead
- The US Dollar’s fightback continued too
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Asian indexes chalked up another session of gains Tuesday thanks to a firm US lead. Risk appetite remained elevated thanks to a lack of bad news from North Korea and as damage from Hurricane Irma, while substantial, seems less than had been feared.
The Nikkei 225 rose 1.2% as the US Dollar held on to gains against the Japanese Yen- a sight which always cheers the Japanese mainboard’s plentiful exporters. The ASX 200 added 0.7%, with the Kospi up 0.2%. Chinese stocks were less cheerful, and seem to be heading toward a flattish close. Still, the broad MSCI list of Asian stocks excluding Japan’s hit a ten-year high
Gold prices plumbed their lowest level for more than a week, with haven assets out of vogue for the present. Crude oil prices were about 5 cents/barrel lower, reportedly as investors weighed up the prospects for reduced US consumer demand in Irma’s wake against rising demand from refineries coming back on stream. There was also some speculation that production cuts currently in place could be extended.
There’s a British flavour to the rest of the session’s key economic numbers with a plethora of official inflation data due from that country. Leading the pack will be August’s Consumer Price Index.
The Pound firmed up against the Euro as markets look toward this week’s Bank of England monetary policy decision. Interest rates aren’t expected to rise, but some market watchers think that some more hawkish rhetoric could be coming from London.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX