Asia markets resume upward trend after record close on Wall Street

A man stands in front of an electronic board displaying stock information inside the Australian Securities Exchange. Sydney closed up 0.28% to 5,527.2 points yesterday.

AFP

Tokyo 

Asian markets resumed their upward trend yesterday following another record-breaking close on Wall Street, where strong economic data buoyed sentiment as investors returned from a long weekend.

The bullish sentiment provided the dollar with support, while the euro remains under pressure on expectations the European Central Bank will announce fresh measures to combat deflation fears.

Tokyo rose 0.24%, or 34.43 points, to finish at 14,670.95, Seoul gained 0.97%, or 19.43 points, to 2,017.06 and Sydney added 0.28%, or 15.5 points, to 5,527.2. Shanghai climbed 0.77%, or 15.66 points, to 2,050.23 and Hong Kong added 0.59%, or 135.73 points, to 23,080.03.

In other markets, Bangkok added 0.72% or 10.06 points to 1,402.79; Thai Airways International gained 3.82% to 13.60 baht, while oil company Bangchak Petroleum rose 2.52% to 30.50 baht.

Kuala Lumpur’s main stock index added 4.09 points or 0.22% to 1,871.66; IJM Corp ended 3.8% higher at 6.85 ringgit while Public Bank rose 2.1% to 20.48. Bumi Armada fell 2.4% to 3.64 ringgit.

Singapore’s Straits Times Index dropped 0.07%, or 2.22 points, to 3,271.84; Overseas-Chinese Banking Corp eased 0.31% to Sg$9.63 while real estate developer Capitaland gained 1.27% to Sg$3.18.

Jakarta closed up 0.44%, or 21.65 points, at 4,985.58; state miner Aneka Tambang rose 0.82% to 1,230 rupiah, while telecommunication operator Indosat lost 0.12% to 4,035 rupiah. Taipei put on 0.73%, or 66.42 points, to 9,121.71; Hon Hai edged up 0.65% to Tw$93.4 while Taiwan Semiconductor Manufacturing Co was 0.4% higher at Tw$124.0.

Wellington rose 0.69%, or 35.61 points, to 5,181.46; Fletcher Building was up 0.55% at NZ$9.18 and Air New Zealand added 0.23% to NZ$2.165.

Manila rose 0.11%, or 7.62 points, to 6,787.88; Philippine Long Distance Telephone Co edged up 0.07% to 2,896 pesos while Megaworld gained 0.87% to 4.64 pesos. After the Memorial Day long weekend US shares rallied on Tuesday in response to more data showing the economy is getting back on track. Independent business research group The Conference Board said its index of consumer confidence rose to 83.0 in May from 81.7 last month. It is also well up from 74.3 a year ago.

Home prices in the US rose 0.9% in March after a February stall caused by severe winter weather, the S&P/Case-Shiller index showed. And the Commerce Department said new orders for US durable goods rose 0.8% in April, a third consecutive pick-up and better than forecasts for a 1.3% fall.

The S&P 500 climbed 0.60% Tuesday, hitting another record after breaking the 1,900 level for the first time Friday.

The Dow added 0.42%, while the Nasdaq surged 1.22%. Eyes are now on the release of revised first-quarter economic growth data tomorrow.

In foreign exchange trade, the dollar sat at 101.90 yen, compared with 101.96 yen in New York Tuesday. While the greenback is unable to break the 102 yen barrier it has been supported by the upbeat outlook on the global economy, which has seen investors embrace more risk and move away from the safe-haven Japanese unit.

The euro bought $1.3624 and 138.78 yen against $1.3634 and 139.03 yen. The single currency has slipped steadily for three weeks as dealers bet the ECB will move to loosen monetary policy when its board meets on June 5. Nobel laureate and economist Paul Krugman urged the ECB Tuesday to raise its 2.0 inflation target.

“I am well aware that any proposal for a rise in the inflation target is greeted with extreme scepticism by central bankers,” Krugman said at an ECB forum on monetary policy in Sintra, near the Portuguese capital Lisbon.

“If the two% target was defendable in the 1990s, it’s likely not to be adequate in the future,” he said.

Oil prices were mixed. The US benchmark, West Texas Intermediate for delivery in July, rose 12 cents to $104.23 in afternoon trade. Brent North Sea crude for July gained 21 cents to $110.23 per barrel.