Asian Shares Rise as U.S. Stocks Hit Record Highs
August 11 2016 - 11:40PM
Dow Jones News
Stocks rose across the board in Asia Friday, catching an updraft
from the U.S., where the three main indexes closed at record levels
on the same day for the first time since 1999.
The Nikkei Stock Average was up 0.9% in morning trade at its
highest level since early June. Australia's S&P/ASX 200 was up
0.4% and Hong Kong's Hang Seng Index rose 0.8%. South Korea's Kospi
was trading 0.3% higher and Singapore's Straits Times Index rose
0.2%.
Overnight, the Dow Jones Industrial Average, S&P 500 and the
Nasdaq Composite all closed at record levels in the U.S., propelled
higher by firmer oil prices and strong earnings reports from the
retail sector.
"The stock market rally may be displaying its true colors with
it becoming increasingly clear that sentiment remains a driver
rather than fundamentals," said Lukman Otunuga, a research analyst
at FXTM, a U.K.-based stocks and commodities brokerage, in a
report.
"Inflated expectations over central banks intervening have
propped stocks higher while talks of easing Brexit uncertainties
continue to attract investors to riskier assets," the report
said.
Economic optimism in the market pushed up the odds of a December
rate-increase by the Federal Reserve to 42.6% from 36.4% a day ago,
according to Fed Funds Futures.
On the other end of the spectrum, Thursday's rate cut by the
Reserve Bank of New Zealand continued to support New Zealand's NZX
50 Index, which rose 0.4%.
"There seems to be few other places for investors to look [for
yields] at the moment," said Daniel Metcalfe, senior investment
adviser at OM Financial.
Reversing just after opening, a softer yen supported the shares
of Japanese exporters. Auto makers gained, with Toyota Motor Corp.
up 1% and Mazda Motor Corp. up 2%.
Shares in Sharp Corp. surged 15% after Chinese antitrust
authorities approved Foxconn Technology Group's offer to buy the
Japanese electronics firm.
Toshiba Corp. maintained its gains, last up 4.1%, following the
Nikkei financial daily report Thursday that the company is
estimated to have turned in an operating profit of ¥ 20 billion
($196 million) in April-June—its first profit in six quarters.
Hiroyuki Kachi, Riva Gold and Ewen Chew contributed to this
article.
Write to Ese Erheriene at ese.erheriene@wsj.com
(END) Dow Jones Newswires
August 11, 2016 23:25 ET (03:25 GMT)
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