Asian Stocks Mostly Higher, Nikkei Posts Best Close Since Jan 1992
- Asian stocks were mostly higher
- Only South Korea’s bucked the trend
- More elevated oil prices and a strong US lead provided support
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Most Asian stocks managed gains Tuesday to greet new Wall Street records the session before, with oil prices still boosting energy stocks despite a modest retreat.
The Nikkei 225 added 1.7% with energy-related names predictably well bid. The Japanese stock benchmark continued its phenomenal run higher to close at highs not seen since January, 1992. South Korea’s Kospi provided the Asia Pacific region with its only loser, closing down as tech weakness overwhelmed strength elsewhere.
The US Dollar slipped a little, albeit from eight-month highs against the Japanese Yen, as Treasury yields retraced. There was reportedly lingering uncertainty over whether Republicans will pass their tax bill in a timely way. The Australian Dollar made initial, hard-to-explain gains following a Reserve Bank of Australia moetary policy decision which was ostensibly exactly as expected. The RBE held rates at record lows and made no alterations to any of its forecasts.
Gold prices fell slightly, perhaps unsurprisingly given recent gains. Crude oil prices edged lower from two-and-a-half year peaks with the market very much focused on the remarkable political purge apparently taking place in Saudi Arabia.
There’s very little first-tier economic news on the rest of Tuesday’s slate. However a gaggle of leading European Central Bank personalities will speak in Frankfurt including President Mario Draghi and Executive Board Member Sabine Lautenshlaeger.
The Job Openings and Labour Turnover Survey (better known as JOLTS) is due from the US.
--- 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.