Asian Markets Post Broad Gains, HK’s Hang Seng Tops 30,000

Talking Points:

• Major Asian bourses were all higher into Wednesday’s close
• The Hang Seng topped 30,000 for the first time in a decade
• Fed Chair Janet Yellen spoke, but her cautious optimism didn’t move the markets

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Asian markets rose Wednesday after Wall Street made some new record highs the day before thanks to a tech rally. Hong Kong’s Hang Seng was the star player, topping 30,000 for the first time in ten years.

The Nikkei 225 rose 0.48%, with the ASX 200 up 0.38% and Shanghai and Seoul mainboards up too.

But the US Dollar sagged a little as Treasury yields remained stubbornly low, despite a broad rise in risk appetite. A speech from US Federal Reserve Chair Janet Yellen, in which she evinced cautious hope that the central bank would hit both inflation and employment targets, largely past pre-Thanksgiving markets by. The Euro steadied somewhat after falling Tuesday on Germany’s political impasse.

Crude oil prices firmed, reportedly on hopes for OPEC production-cut extensions next week. Gold prices inched up as the US Dollar crept the other way.

Still to come Wednesday the UK Finance Minister will present his eagerly awaited “Brexit Budget” to Parliament. US durable goods orders data are also due, as is the latest Eurozone consumer confidence. The University of Michigan’s own consumer confidence snapshot is coming up, along with US energy inventory information from the Department of Energy.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX