Asian stocks inched up into a 10-year high on Wednesday, cheered by record highs on Wall Street, while the dollar’s rise against the yen helped boost Japanese stocks.
The Samp;P 500, Dow Jones industrials and Nasdaq Composite all marked listing finishes as investors’ concerns faded about North Korean tensions in addition to the effects of Hurricane Irma.
Gains were kept in check, however, by a decrease in stocks of Apple Inc after it unveiled its latest line of iPhones. Apple fell 0.6 percent but pared some reductions in afterhours trade.
The new iPhone’s earnings will have consequences beyond Apple for many providers in addition to its rivals.
MSCI’s broadest index of Asia-Pacific shares outside Japan was marginally higher in early trade, while Japan’s Nikkei stock index added 0.4 percent to some one-month high, obtaining a tailwind from a weaker yen.
“The Nikkei isn’t rising on principles right now, but instead on demand and supply moves, as the weaker yen prompts investors to cover short positions” they took during recent bouts of risk aversion, said Yutaka Miura, a senior technical analyst at Mizuho Securities.
“Lately, we’ve seen some reactive moves in early trading, then stabilization or perhaps profit-taking later in the session, and now could be the same,” Miura said.
The dollar was steady on the day at 110.06 yen, well above last Friday’s 10-month low of 107.32 plumbed when Hurricane Irma loomed and investors braced for the possibility of another missile or nuclear test to indicate North Korea’s founding day on Sept. 9.
The yen tends to benefit during times of political and economic uncertainty because of Japan’s net creditor nation status, along with the expectation that Japanese investors would repatriate assets during times of crisis.
The euro was up 0.1 percent at $1.1973, while the dollar index was stable in 91.860, well above Friday’s 2-1/2-year low of 91.011.
Crude oil futures were mixed after increasing on Tuesday, when OPEC forecast higher need in 2018 and Russia and Venezuela affirmed their commitment to a production-cutting deal to decrease the international crude glut.
Brent crude edged down 0.1 percent to $54.21 per barrel, whereas U.S. crude added 0.2 percent to $48.30.
Courtesy: The Globe And Mail