Business

Asian stocks eked out gains on Wednesday, with sentiment boosted by Wall Street's rise.SHANGHAI: Asian stocks eked out gains on Wednesday, with sentiment boosted by Wall Street's rise and a record intraday high for the SP 500 index on Tuesday, but fragile Chinese markets retreated after two days in the black.
Shares in much of the region were also aided by hopes that the trade talks between the US and China expected this week will ease trade tensions.But Chinese investors sold shares across the board, sending both the Shanghai Composite index and blue-chip CSI300 index down 0.5 per cent, as economic concerns returned after the central bank said on Tuesday it would not resort to strong stimulus to support growth.US President Donald Trump told Reuters on Monday that he does not expect much progress from the trade talks with China.MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, while Japan's Nikkei stock index advanced 0.7 per cent.Seoul's Kospi rose 0.4 per cent, buoyed by tech firms as data showed robust chip exports, and Taiwan shares were 0.2 per cent higher.But SP futures turned lower on Wednesday morning as markets assessed the possible impact of a guilty plea from Trump's former personal lawyer, and the conviction of former Trump campaign chairman Paul Manafort."Next to these headlines, trade news fell completely under the radar," Citi analysts said, noting "concern that something could come out linked to Trump or other of his associates" and that Cohen's guilty plea sparked a late-session bid in US treasuries.SP E-mini futures were 0.2 per cent lower at 2855.
The yield on benchmark 10-year Treasury notes fell to 2.8298 percent compared with its US close of 2.844 per cent on Tuesday.Investors are also looking to Wednesday's release of minutes from the US Federal Reserve's August meeting, and a speech by Fed Chairman Jerome Powell on Friday for clues on future rate hikes.Trump on Monday told Reuters he was "not thrilled" with the Fed under his appointee Powell for raising rates, and said the US central bank should do more to boost the economy.The two-year yield, which rises with traders' expectations of higher Fed fund rates, were at 2.5996 percent Wednesday compared with a U.S.
close of 2.608 percent.Australian shares fell 0.3 per cent the day after a leadership challenge to Prime Minister Malcolm Turnbull."There's a bit of a risk premium now being built into Australia," said Hugh Dive, chief investment officer at Atlas Funds Management in Sydney.
"If you're a foreign investor, suddenly Australia's looking a lot less attractive."In New York on Tuesday, the SP 500 rose as high as 2,873.23, topping the previous record of 2,872.87 set on January 26, and is poised to become the longest-running bull market in the index's history on Wednesday.The Dow Jones Industrial Average closed up 0.25 per cent to 25,821.95, the SP 500 rose 0.21 per cent to 2,862.91, and the Nasdaq Composite added 0.49 per cent to 7,859.17.On Wednesday, the dollar edged higher against the yen, gaining 0.06 per cent to 110.36.The dollar index, which tracks the greenback against a basket of six major rivals, was 0.04 per cent lower 95.220.The currency has lagged following Trump's comments on Monday, in which he also accused China and Europe of manipulating their currencies.The euro was up 0.05 per cent on the day at $1.1575, while China's yuan strengthened to 6.8437 per dollar at 0257 GMT, 76 pips stronger than its previous onshore close.In commodity markets, US crude rose 0.4 per cent to $66.10 a barrel.
Brent crude was 0.3 per cent higher at $72.81 per barrel.Spot gold was flat, after earlier rising 0.2 per cent to $1,197.76, its highest level since August 14.
Thomson Reuters 2018(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)





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