Asian Shares Edge Up, Bolstered by Modest Gains on Wall Street

Paterniano Del Favero
Agosto 22, 2017

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 per cent.

Standard & Poor's 500 index steadied following losses. The Shanghai Composite was shed 0.13% and the Shenzhen Composite slid 0.15%.

The Australian stock market got a helping hand from strong gains for global mining giant BHP Billiton, which reported a surge in annual underlying profit to $6.7 billion on Tuesday.

Japanese shares fell for the fifth straight session even as the yen weakened to snap four days of gains.

Nonetheless, Trinh cautioned that commodities have mostly firmed "on speculative Chinese investment flow from the wealth management industry, so we question the real demand".

In early trading, London's FTSE 100 rose 0.7 percent to 7,374.00 and Germany's DAX added 0.7 percent to 12,149.77.

The country's forces began computer-simulated military exercises with the United States on Monday, which Pyongyang has denounced as a "reckless" step toward a nuclear war.

Fujitsu rose 0.6 percent on a Nikkei report that the company is looking to sell its mobile phone business amid stiff competition. The euro declined to $1.1778 from $1.1815.

"If you look at the corporate earnings side, it is quite encouraging, now that some export-related companies have chose to change their euro/yen assumptions from around 115 to 125 or so", expecting the Japanese currency to trade stably against its European counterpart, said Akio Yoshino, chief economist at Amundi Japan Ltd.

The dollar index, which tracks the greenback against a basket of six major rivals, was steady on the day at 93.108.DXY.

The dollar has recently faced selling pressure from cool U.S. inflation data as well as concerns that ongoing political turmoil will prevent President Donald Trump from implementing much of his aggressive stimulus and tax reform measures, which in turn could lead the U.S. Federal Reserve from pursuing further policy tightening.

"Fed fund futures are showing well below even odds at this point for a move between now and the year-end", he said, adding that while he still expects one more interest rate hike this year, many investors do not.

Expectations of what might emerge from the Fed's annual conference in Jackson Hole, Wyoming are also "relatively tempered", Northey said. Federal Reserve Chair Janet Yellen and European Central Bank head Mario Draghi are both expected to speak. Investors wonder when the European Central Bank may follow suit. Brent crude, used to price worldwide oils, rose 36 cents in London to $52.02.

Brent crude futures LCOc1 added 14 cents to $51.80 per barrel, while USA crude CLc1 rose 15 cents to $47.52.

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