AFP, Hong Kong :
Asian markets edged up Friday and the dollar rallied on hopes for Donald Trump’s tax cut plans but there is a sense
of caution that the rally may have run its course as equities sit at multi- year highs
A succession of strong earnings and economic indicators has fuelled optimism on trading floors in recent weeks, with Wall Street’s three main indexes continuously hitting records.
However, there is chatter that it might be time to take a breather with a number of key issues on the horizon including the choice of a new Federal Reserve boss, Brexit talks and the Catalan crisis.
Treasury chief Steven Mnuchin said this week that markets could see a correction if US lawmakers fail to pass the president’s tax-cut measures, while People’s Bank of China governor Zhou Xiaochuan warned of “excessive optimism” and a possible plunge in prices.
But Trump’s promise to pass the legislation moved a step closer when senators agreed a budget resolution that unlocks a procedure allowing Republicans to push through such measures without the need for Democrat help.
While the controversial proposals still have a long way to go before being passed, the news boosted the dollar against the yen, euro and pound.
Stephen Innes, head of Asia-Pacific trading at OANDA, said: “It’s likely not too late to jump on this party bandwagon as global equity markets continue ratcheting higher… or the Trump trade bandwagon for that matter.”
Tokyo ended the morning marginally higher as a weaker yen helped reverse early losses to put the Nikkei, already at two-decade highs-on course for its 14th straight gain.
Hong Kong rallied 0.7 percent after sinking almost two percent Thursday on profit-taking, while Sydney and Seoul each put on 0.4 percent, and Singapore gained 0.3 percent. But Shanghai eased 0.1 percent and there were also losses in Taipei and Manila.
Asian markets edged up Friday and the dollar rallied on hopes for Donald Trump’s tax cut plans but there is a sense
of caution that the rally may have run its course as equities sit at multi- year highs
A succession of strong earnings and economic indicators has fuelled optimism on trading floors in recent weeks, with Wall Street’s three main indexes continuously hitting records.
However, there is chatter that it might be time to take a breather with a number of key issues on the horizon including the choice of a new Federal Reserve boss, Brexit talks and the Catalan crisis.
Treasury chief Steven Mnuchin said this week that markets could see a correction if US lawmakers fail to pass the president’s tax-cut measures, while People’s Bank of China governor Zhou Xiaochuan warned of “excessive optimism” and a possible plunge in prices.
But Trump’s promise to pass the legislation moved a step closer when senators agreed a budget resolution that unlocks a procedure allowing Republicans to push through such measures without the need for Democrat help.
While the controversial proposals still have a long way to go before being passed, the news boosted the dollar against the yen, euro and pound.
Stephen Innes, head of Asia-Pacific trading at OANDA, said: “It’s likely not too late to jump on this party bandwagon as global equity markets continue ratcheting higher… or the Trump trade bandwagon for that matter.”
Tokyo ended the morning marginally higher as a weaker yen helped reverse early losses to put the Nikkei, already at two-decade highs-on course for its 14th straight gain.
Hong Kong rallied 0.7 percent after sinking almost two percent Thursday on profit-taking, while Sydney and Seoul each put on 0.4 percent, and Singapore gained 0.3 percent. But Shanghai eased 0.1 percent and there were also losses in Taipei and Manila.
