Home / Front Page/ Asian shares conquer 10-year peak

Asian shares conquer 10-year peak


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 17 October 2017 00:14

Facebook

Sydney (Reuters): Asian shares advanced to a decade high on Monday, while US oil futures jumped to hover near a six-month top as escalating tensions between the Iraqi government and Kurdish forces threatened supply.

Iraqi forces began moving at midnight on Sunday towards oil fields held by Kurdish Peshmerga fighters near the oil-rich city of Kirkuk. In response, US crude climbed 0.9% to $51.92 a barrel, not far from $52.85 touched late last month - a level not seen since April. Brent crude climbed 1.2% to $57.88 per barrel.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained for a fifth day running to its highest level since late 2007.

Japan’s Nikkei rallied for a sixth day to a level not seen since November 1996. Australian shares extended their winning streak to a fourth straight session to rise 0.6%, while the Shanghai Composite Index edged 0.1% higher.

China news could be a key driver of markets this week ahead of the start of a leadership summit and key economic data, including third quarter economic growth.

“In terms of event risk the focus is on China with the Party Congress getting underway on Wednesday... and inflation data today,” said Chris Weston, Chief Market Strategist at IG Markets.

“The inflation numbers are important as they form part of the argument around the global reflation thematic priced into markets of late.”

China’s producer prices beat market expectations to rise 6.9% in September from a year earlier helped by a construction boom that bolstered prices for building materials from steel to copper pipes.

China’s strong demand for raw materials this year has also helped produce a reflationary pulse that is being felt worldwide.

Indeed, both iron ore and coke, key ingredients in steel-making jumped on Monday. Dalian iron ore futures climbed 2.5% to a 2-1/2 week while coke for January delivery rose 2.4%.

However, inflation is not showing signs of a pick-up in the United States with persistent modest readings a worry for the US Federal Reserve as it tightens its ultra-loose policy.

Underlying inflation in the United States was muted at 0.2% in August, data showed on Friday.

The reading sent US Treasury bond prices rallying with the yield on 10-year notes at 2.29% versus a top of 2.40% last week, as investors trimmed the implied probability of a December rate hike.

The dollar index, which measures the greenback against a basket of currencies, was a touch firmer at 93.207. It inched up on the yen to 112.04.

The euro slipped 0.2% to $1.1799 and was poised for its third straight day of losses on lingering concerns about the eurozone after a conservative Austrian leader secured a victory in parliamentary elections at the weekend.

In Germany, Chancellor Angela Merkel prepares for tricky coalition talks after her party suffered a defeat at the hands of the Social Democrats in a vote in the northern state of Lower Saxony on Sunday.

Meanwhile, Catalan leader Carles Puigdemont has until 0800 GMT on Monday to clarify whether he is calling for the region’s independence from Spain, with Madrid threatening a return to direct rule if his stance remains ambiguous.

In commodities, gold hovered near three-week highs at $1.301.65.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Trendvertising: The new world of communication in a hashtag world

Tuesday, 20 August 2019

Rahul Bose, an Indian actor, caught a lot of attention for a video post that went viral, where he complained about the price of bananas during his stay at a five-star hotel in Mumbai. As he explained in his story – he went to the gym at his hotel w


Company Law intertwined with Income Tax – Understanding the nexus! Part II

Tuesday, 20 August 2019

A comparison and analysing the impact of corresponding provisions of Companies Act No. 7 of 2007 and Inland Revenue Act No. 24 of 2017 reveals invaluable insights corporate management must be aware of in day-to-day management activities as well as st


Will ‘10 February’ be repeated?

Tuesday, 20 August 2019

Whilst Sri Lanka is in election mode, the thought crossing every Sri Lankans mind is, ‘Will the 10 February 2018 elections behaviour be repeated?’ given the head-start that ‘Brand Gota’ has got. Whilst many are speculating who will be the fig


Shanta Devarajan: Economist who cannot get disconnected from his motherland

Monday, 19 August 2019

For me, Shanta Devarajan, formerly the Acting Chief Economist of the World Bank Group succeeding the Nobel Laureate Paul Romer and presently Professor at Georgetown University, USA, was a legend by himself. When I met him in early part of the new mil


Columnists More

Special Report

SPECIAL REPORT MORE