Asian stocks consolidate after Wall Street gains, oil slips

Thursday, 25 August 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Asian stocks consolidated a recent run of gains on Wednesday, helped by Wall Street’s rise overnight, even as oil prices slid on trade data showing a surprise build-up in US crude stocks.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1% in early trades. It has risen more than 14% since late June to hit a 1-year high last week.

Futures prices showed Australian shares were poised to edge higher on Wednesday while New Zealand stocks slipped after a recent rally.

US housing-related stocks jumped 2% after the Commerce Department reported new US single-family home sales soared unexpectedly in July to near nine-year highs.

The Dow Jones industrial average rose 17.88 points, or 0.1%, to 18,547.3, the S&P 500 .SPX gained 4.26 points, or 0.2%, to 2,186.9 and the Nasdaq Composite added 15.48 points, or 0.3%, to 5,260.08.

The upbeat housing data prompted markets to extend their search for further clues to whether the Federal Reserve will raise US interest rates this year. Global central bankers gather in Jackson Hole, Wyoming, later this week with investors focused on a speech by Fed Chair Janet Yellen on Friday.

The spike in new US home sales pushed the dollar to 94.6 against a trade-weighted basket of currencies =USD after a drop of more than 2% so far this month.

The Australian dollar AUD=D3 looked set to add to recent gains as Australia’s relatively higher interest rates attracted overseas investors.