Wall Street performance boosts Asian stocks up to eight-month high, pound suffers
SYDNEY-Asian shares clocked in gains reaching its peak in eight months on Tuesday brought by trade deal enthusiasm and Wall Street’s consecutive well-ended performance. In line, Brexit anxiety dragged the pound.
Upbeat signals launched MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up with 0.4% gains, its highest recorded performance since April. Japan’s Nikkei .N225 reached its firmest level as Hong Kong’s Hang Seng .HSI soared half a percent.
Australia’s S&P/ASX raked in minimal gains to Monday’s overall earnings. However, bond markets, currencies, and commodities were tepid as futures trade retreated in Europe and United States after healthy activity last Monday.
“As long as volatility remains low, momentum is probably continuing, despite the amazing year to date gains,” said Kay Van-Petersen, Saxo Capital Market’s global macro strategist.
“The risk is that nobody thinks that there’s anything left for the year, they’re all thinking 2020,” he added.
The initial pact of Washington and Beijing is set to double US exports to China as disclosed by White House adviser Larry Kudlow. In line, the United States will cut some percentage from tariffs on Chinese goods as part of the recent arrangement.
The trade pact is yet to be signed and the Chinese government is cautious but US Trade Representative Robert Lightizer said the the pact is “totally done”.
The three major US stock indexes increased marginally as all faced record closing highs together with pan-European STOXX 600 index.
The Dow Jones Industrial Average .DJI acquired 0.4% gains, the S7P 500 .SPX swiped in 0.7% and Nasdaq .IXIC slightly increased with 1%. This year, Nasdaq boosted in value while its peer indexes soared more than 20%.
Across the British zone, the FTSE 100 .FTSE reached its highest gains in a year. However, market anxieties resurfaced after closing its session.
Prime Minister Boris Johnson was reported to utilize his huge influential scope to reinstate strict deadline for exiting the European Union at the later part of 2020, bringing potential chaos to Brexit.
Sterling GBP hit low ground with 0.6% decline before finding momentum.