The Dow finished at a fresh record after US President Donald Trump chose Jerome Powell to lead the Fed, viewed as a non-controversial choice unlikely to radically change the gradual tightening monetary policies that stock markets support.
But optimism over a long-awaited tax cut plan unveiled by Congressional Republicans — intended to slash corporate rates and speed economic growth — was tempered by internal dissent and Democrat opposition.
Investors yesterday also awaited the release of a key US jobs report giving non-farm payroll figures.
A sharp rebound in employment levels was expected by the market, after September’s numbers were hit by Hurricanes Harvey and Irma.
Meanwhile Apple suppliers in Asia rose as the company said profit had climbed 19% to $10.7bn, and predicted bumper sales for its 10th anniversary iPhone X. Taiwan’s Largan Precision rose, as did Hong Kong-listed Cowell E Holdings and Sunny Optical Technology.
Apple’s latest smartphone was launched in more than 50 countries and territories yesterday including in many Asian markets, with lengthy overnight queues at stores as chief executive Tim Cook described “very strong” orders.
Hong Kong shares rose 0.3%. Retail figures for the city were due out Friday, with a jump in mainland Chinese visitors expected to give a healthy reading, Bloomberg reported.
Taiwan rose 0.1%, while South Korea gained 0.3% to a new record high.
But Shanghai was down 0.3%, as Beijing moved to tighten regulations on foreign acquisitions. Meanwhile, Chinese e-commerce giant Alibaba said soaring sales fuelled a 132% increase in net profit in what it called an “outstanding” quarter.
Alibaba raised revenue expectations as it continues to profit from the Chinese e-commerce boom that it helped to ignite.
Hong Kong-listed Tencent, a fellow giant in the sector, saw shares rise in Hong Kong yesterday.
Japanese markets were closed for a public holiday.
Oil futures continued their rally yesterday, with Brent and WTI both approaching two-year highs.
Prices have risen on diminished inventories as investors detect growing evidence that Opec and other producers will extend a landmark output cut deal, and exports from northern Iraq fall on clashes between the Kurds and Baghdad forces.
Venezuela President Nicolas Maduro said on Thursday that his country, seen by many investors on the threshold of default, will try to restructure its debt — much of which is held by China and Russia, and due to be paid off in oil.
Elsewhere Sydney’s index rose 0.5%, approaching a two-year high, as equities were buoyed by healthy returns on mining as commodities metals rallied.
A falling Australian dollar, after figures showed the weakest quarter for domestic retail sales in seven years, also contributed.
In announcing his pick for the new Fed chief, Trump said former investment banker Powell has the wisdom and intelligence to guide the world’s largest economy.
Analysts say choosing Powell allows Trump to put his own imprimatur on the central bank with a minimum of disruption. “Meet the new boss, mostly the same as the old boss,” said a note from Barclays.
In Tokyo, the Nikkei 225 closed for public holiday. Hong Kong — Hang Seng closed up 0.3% at 28,603.61 points and Shanghai — Composite fell 0.3% at 3,371.74 points yesterday.
