Asian Markets Rise Broadly Thanks To US Earnings Optimism
- Asian stock markets were all higher as trade headed into the close
- With a 47th record closing peak for the Dow as backdrop, investors were feeling good
- US earnings-season optimism is clearly infectious
Asian stocks markets were all in the green Wednesday, perhaps unsurprisingly as Wall St. finished the previous session in good spirits as investors there looked with hope to earnings season.
The Dow managed a 47th all-time closing high, making 2017 a record year in this regard with the best part of three months still to go. In response the Nikkei 225 added 0.3%- for its highest close since December 1996- despitre the travails of scandal-hit titan Kobe Steel. The ASX 200 0.6%. Chinese bourses were up by less, but still quite bouyant.
The US Dollar was confined to tight ranges against major rivals, meanwhile, with interest-rate differentials driving markets to such an extent that strong economic numbers from Japan and Australia passed their respective currencies by. The British Pound meandered lower. It was possibly weighed down by the International Monetary Fund which lowered its UK growth forecast even as it evinced more optimism elsewhere, although it was also gloomier about the US.
Gold prices had found some support earlier in a weaker US Dollar but they gave up gains as the greenback steadied. Crude oil prices were steady once again, reportedly as investors clung to hope of a more balanced physical market ahead. The Euro found support as Spain’s restive Catalonia province stepped back from declaring independence from Madrid.
Wednesday is a light day for scheduled European and North American economic news. Only US mortgage application data and the Job Openings and Labour Turnover Survey (JOLTS) due.
--- 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.