Global Stocks Rise Despite Uncertainty About Jackson Hole
August 22 2017 - 11:13PM
Dow Jones News
By Ese Erheriene
Global stocks kept rising and investors added to risk positions
despite uncertainties about what could emerge from a central
banking conclave in Jackson Hole, Wyo., which begins Thursday.
Asia-Pacific stocks were widely higher early Wednesday, getting
a lift from improved sentiment and a stronger U.S. dollar. But
Chinese equities fell modestly on a 5% slide in metals futures and
Australia's benchmark turned lower as Commonwealth Bank of
Australia faced a potential shareholder lawsuit in the wake of a
government money-laundering case.
"The bulls seem to have taken back some control here," said
Chris Weston, chief market strategist at IG Group. After Asian
stocks broadly rose Tuesday, "we expect another positive session
ahead and traders adding to risk."
Investors turned upbeat after days of concerns about American
politics and North Korea tensions, which had kept a lid on equities
and favored haven assets. But comments from U.S. House Speaker Paul
Ryan that tax-reform proposals are gaining traction helped
sentiment.
Meanwhile, investors were doing some strategic positioning ahead
of the Jackson Hole economic gathering. Comments from Federal
Reserve Chairwoman Janet Yellen and European Central Bank President
Mario Draghi will be closely watched for clues on monetary
policy.
Jane Fu, a sales trader at CMC Markets, said investors don't
expect either to break any news, but market participants
"everywhere remain cautious ahead of the important gathering."
After a week straight of declines, putting it at four-month
lows, Japan's Nikkei led Asian stocks higher Wednesday. The index
was recently up 0.6% as the dollar regained some ground against the
yen; the dollar rose to Yen109.70, a half-yen higher than where the
pair was when equities trading ended Tuesday.
Tech stocks were strong in Asia, with that sector helping send
Taiwan's Taiex up 0.5%. Apple suppliers Hon Hai and Largan each
rose at least 1%.
Meanwhile, a 1% gain for Samsung Electronics helped South
Korea's Kospi rise 0.2%.
Trading in Hong Kong was halted for at least the morning session
as Typhoon Hato neared the city with maximum sustained winds of 165
kilometers an hour.
The dollar's overnight gains were extended slightly in Asia
trading. That, and an industry group's downbeat reading on U.S.
gasoline and distillates inventories for last week, helped pressure
oil in Asian trading. U.S. and global crude benchmarks were
recently down about 0.5%, erasing Tuesday's modest gains.
Write to Ese Erheriene at ese.erheriene@wsj.com
(END) Dow Jones Newswires
August 22, 2017 22:58 ET (02:58 GMT)
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