Asian Stocks Mixed As Markets Mull US Tax-Cutting Plans
- Asian stocks liked the stronger US Dollar seen as the local session got under way
- However the session lacked true direction and moves beyond the Nikkei were small
- New Zealand’s central bank left rates alone but seemed more worried about growth prospects
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Asian stocks were mixed yet again Thursday, and rather directionless overall, as investors digested the latest tax plan from the administration of US President Donald Trump.
The long-anticipated reform scheme was submitted Wednesday by House Republicans. It included proposals for big cuts to both individual and corporate taxation. Wall Street liked it on the day, even though there is still considerable uncertainty as to how it would be funded. In any case the Nikkei 225 ended up 0.47%, with the Kospi and the ASX joining it in the green. Chinese stocks were more listless with the mainboards inching lower in both Hong Kong and Shanghai.
The US Dollar hit one-month highs against a basket of its most widely traded rivals Thursday on hopes for those tax reforms, and on strong US durable goods order data the day before. The New Zealand Dollar slipped after its home central bank held rates as expected but seemed a little less upbeat on domestic growth prospects.
There’s a lot of economic news still on offer Thursday, led by September’s German Consumer Price Index. Investors will also get another look at official second-quarter Gross Domestic Product numbers out of the US from where initial jobless claims and goods trade balance numbers will also be forthcoming. The Reserve Bank of Australia’s Deputy Governor Guy Debelle will speak at a conference in London.
--- 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.