Tokyo, Japan (BBN)-Stocks in Asia joined a global equities rally as corporate results reignited investors’ optimism in economic growth.
A surge in commodities prices bolstered raw-materials companies, while gold maintained losses, reports the Bloomberg.
The MSCI Asia Pacific Index headed toward the highest closing level since September as equity markets from Tokyo to Australia climbed after the S&P 500 Index closed at a record.
BHP Billiton Ltd paced gains in commodities shares and iron ore extended a rally.
The yen edged higher after slumping on Tuesday.
The Aussie fell after weaker-than-expected inflation data, while oil retreated after a four-day advance.
Investors are turning more optimistic as earnings reports top forecasts amid signs of growing demand across the globe.
Japan snapped a 14-month run of falling exports, helped by a surge in shipments to China.
Traders are also encouraged as US President Donald Trump begins to offer more details of his policies, including laying out incentives such as tax cuts for top automakers to attract new plants in America.
“The fact that the US economy is strong is positive for the global economy, and right at this moment, investor sentiment is tipped toward hope that President Trump is trying something new,” said Chihiro Ohta, a Tokyo-based senior strategist at SMBC Nikko Securities Inc.
Corporate earnings are offering relief after traders began to unwind a rally in the dollar and equities amid concern that gains after Trump’s election had gone too far.
Alibaba Group Holding Ltd. lifted its sales forecast as Chinese spending held strong and BHP reported a gain in second-quarter iron ore production after prices soared on demand from China.
D.R. Horton Inc., the largest US homebuilder, topped analysts’ estimates as job growth fueled buyer demand.
HERE ARE THE MAIN MOVES IN MARKETS:
The MSCI Asia Pacific Index increased 0.3 percent as of 12:52pm in Tokyo, poised for the highest closing level since September 29.
Japan’s Topix index climbed 0.8 per cent.
Data showed Japan snapped a 14-month run of falling exports in December, thanks to a global pickup in demand and a surge in shipments to China.
The yen rose 0.2 per cent to 113.53 per dollar, after the previous session’s slide of 1 per cent.
The Bloomberg Dollar Spot Index was little changed.
The greenback has fallen for four straight weeks, the longest retreat since February.
The Australian dollar fell 0.5 per cent, erasing gains after data showed consumer-price growth weakened.
Australia’s S&P/ASX 200 Index added 0.4 per cent.
The Mexican peso reversed early gains on a New York Times report that Trump will sign an executive order for a border wall to be built.
Hong Kong’s Hang Seng increased 0.2 per cent, while the Shanghai Composite Index also advanced 0.2 per cent.
The Kospi index advanced 0.2 per cent.
Data showed South Korea’s economy expanded at the slowest pace in more than a year in the fourth quarter.
Futures on the S&P 500 Index rose 0.1 per cent, after the benchmark index climbed 0.7 per cent on Tuesday.
The Nasdaq Composite Index also advanced to a record high.
The yield on the 10-year Treasury slipped one basis point after a seven point surge to 2.47 per cent on Tuesday.
Gold slid 0.2 per cent to $1,206.23 an ounce after sliding 0.8 percent on Tuesday.
Iron ore futures increased 1.7 per cent, after soaring 3.7 per cent in the previous session, snapping a four-day decline.
BBN/SK/AD