Asian stock markets rallied Wednesday for a fourth day following another record close on Wall Street, with investors optimistic before President Donald Trump's promised announcement of much-vaunted tax reforms.
After shooting out of the blocks Monday in response to Emmanuel Macron's election triumph in France's election first round, trading floors remain buoyant thanks to a strong start to the US earnings season and Trump's expected stimulus.
The positive sentiment has also been boosted by a slight easing of tensions over North Korea and hopes a feared shutdown of the US government can be averted, after the president appeared to soften his stance on congressional funding for his Mexican border wall.
Optimism, at a premium for the past few weeks — owing to geopolitical tensions and Trump's failure to push through key legislation — is swirling around markets again, sending the safe-haven yen lower and thus boosting Japanese stocks.
Tokyo's Nikkei ended up 1.1 percent, while Hong Kong was 0.5 percent higher, its fifth straight day of gains.
Shanghai edged up 0.2 percent, extending the previous day's advance after suffering a sell-off in recent weeks on concerns about a government crackdown on leveraged investments.
Sydney finished 0.7 percent higher while Seoul jumped 0.5 percent. Wellington surged 1.6 percent and there were also gains in Singapore, Taipei and Jakarta.
"Confidence has returned and the yen has fallen back in value," Shane Oliver, head of investment strategy at AMP Capital Investors in Sydney, told Bloomberg News. "Markets seem a lot more relaxed. Globally, we're seeing a lot of risk-on."
In early European trade London dipped 0.1 percent, Paris lost 0.3 percent and Frankfurt was flat.
Asian traders were given a strong lead from Wall Street, where the Nasdaq broke through the 6,000 marker for the first time and the Dow jumped more than one percent on strong earnings reports.
– 'Pushing forward' –
Attention now turns to Washington where the White House will unveil its long-awaited tax reforms, with speculation of huge cuts in personal and corporation tax.
The policy, along with plans to boost infrastructure spending and slash red tape, were among the key drivers of a global markets rally that followed Trump's November election win.
The bill comes weeks after the tycoon's planned healthcare reforms fell at the first hurdle as his own Republican colleagues failed to agree, throwing his whole agenda into doubt.
On currency markets the euro built on this week's gains on reports the European Central Bank could start to wind down its monetary easing programme as eurozone economies continue to improve.
However, the Canadian dollar held up in Asia after tumbling more than one percent Tuesday in response to Washington imposing a 20 percent tariff on softwood lumber imports.
Analysts said the move could be seen as a litmus test of Trump's protectionist policies, which he touted so often during the election campaign.
– Key figures at 0810 GMT –
Tokyo – Nikkei 225: UP 1.1 percent at 19,289.43 (close)
Hong Kong – Hang Seng: UP 0.5 percent at 24,578.43 (close)
Shanghai – Composite: UP 0.2 percent at 3,140.73 (close)
London – FTSE 100: DOWN 0.1 percent at 7,267.46
Euro/dollar: DOWN at $1.0930 from $1.0934 at 2100 GMT
Pound/dollar: DOWN at $1.2820 from $1.2835
Dollar/yen: UP at 111.43 yen from 111.12 yen
Oil – West Texas Intermediate: DOWN 11 cents at $49.45 per barrel
Oil – Brent North Sea: DOWN nine cents at $52.01
New York – Dow: UP 1.1 percent at 20,996.12 (close)
For Chinese fans, popular teen band are mama's boys
Liang Shanshan considers herself a mother of two: one child is her biological son, the other is a 16-year-old Chinese teen pop star she has never met.
She is a "mother fan" and part of a group of women in their mid-20s to 60s whose maternal instincts are set off by China's boy band sensation TFBoys("The Fighting Boys").
The band has won millions of Chinese followers since their 2013 deb … read more
