Asian shares edge up with US tax bill in focus
A man looks at a stock quotation board outside a brokerage in Tokyo, Japan, Apr 18, 2016. (Photo: Reuters/Toru Hanai)
TOKYO: Asian shares pushed higher on Friday (Dec 1), cheered by Wall Street gains after apparent progress on US tax legislation as investors waited for the Senate's vote, while higher US Treasury yields underpinned the dollar.MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. For the week, it was 2.6 per cent lower.Japan's Nikkei stock index was up 0.8 per cent in early trade, on track to gain 1.6 per cent for the week.
"The Nikkei got a lift from the stronger dollar, while the market's main focus is now whether the tax bill will pass or not," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.On Wall Street overnight, major indexes marked gains, with sentiment lifted by apparent progress toward passage of the tax reform legislation. The S&P 500 hit a record closing high and the Dow Jones industrial average topped the 24,000 mark for the first time.
Chances of passage of a Senate tax bill rose with the endorsement of Senator John McCain, as that branch of Congress moved toward a decisive vote. The House approved its own tax bill on Nov 16.News of McCain's endorsement pushed up US Treasury yields to five-week highs, which underpinned the recently beleaguered dollar.The 10-year Treasury yield stood at 2.415 per cent in early Asian trade, steady from its US close on Thursday, and above Wednesday's US close of 2.322 per cent.The dollar was steady on the day 112.54 yen after touching 112.690 earlier, its highest since Nov 21, moving away from a 10-week low of 110.85 yen touched on Monday.The euro was also steady at US$1.1908 , below a two-month peak of US$1.1961 scaled on Monday.Bitcoin was up 1.1 per cent at US$10,042, moving away from the previous session's low of US$9,000, and well shy of this week's record high of US$11,395.Crude oil futures edged down but held on to most of their gains made on Thursday after OPEC and non-OPEC producers led by Russia agreed to extend output cuts until the end of 2018, while also signaling a possible early exit from the deal if the market overheats.US crude futures were down 3 cents, or 0.1 per cent, at US$57.37 a barrel. For November, U.S. crude added 5.5 per cent.
Source : http://www.channelnewsasia.com/news/business/asian-shares-edge-up-with-us-tax-bill-in-focus-9453766