Asia shares firm to near ten-year high ahead of U.S. data, China Congress
Friday, 13 October 2017 09:06 WIB | MARKET UPDATE |MSCI Asia PacificSaham Asia
Asian stocks held firm near a 10-year high on Friday thanks to expectations of brisk global growth, although investors held off chasing the shares higher ahead of U.S. and Chinese economic data as well as the Chinese Communist Party congress next week.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 percent, having gained 3.4 percent so far this month. Japan's Nikkei .N225 was little changed.
Wall Street shares dipped slightly on Thursday, pulled down by a fall in AT&T (T.N) after the telecoms company reported subscriber losses in its cable TV business.
But MSCI™s broadest gauge of the world stocks exchanges covering 47 markets hit another record high, extending its gains so far this year to 17 percent.
On top of a broad consensus that the global economy is in its best shape in recent years, expectations of a tax cut by U.S. President Donald Trump are adding appeal.
In currencies, the dollar lost some steam in recent days as U.S. bond yields appeared to have peaked for now, with minutes from the last U.S. Federal Reserve meeting showed policymakers remained divided on U.S. inflation prospects.
The next big test for the dollar is U.S. consumer inflation figures due later in the day.
On top of the near-term inflation readings, investors are also looking to who Trump will nominate as successor to Fed Chair Janet Yellen, whose term expires next February.
White House Chief of Staff John Kelly said on Thursday that Trump was œsome time away from making a decision, while another official said Trump had met with Stanford University economist John Taylor to discuss the job.
Another main focus is China™s 19th Communist Party Congress that begins on Oct 18, where President Xi Jinping is expected to lay out new policy initiatives and consolidate his power for a second five-year term.
Before that, Chinese trade data due later in the day will be the biggest focus in Asian trade.
The euro EUR= traded at $1.1833, slipping from Thursday's high of $1.1880 but has kept weekly gain of almost 1 percent, though the currency remains dogged by the crisis around the Catalonian independence movement's campaign to split from Spain.
The yen was little moved at 112.28 yen per dollar JPY=, though at that level, it is on course for a slight gain on the week, which would be its first in five weeks.
Source : Reuters