Asian equities continued their positive start to the year on Wednesday following more record closes on Wall Street, but the dollar faced further selling pressure.
Analysts warned that global markets could face an uncertain year as Donald Trump’s tax cuts have already been priced into valuations, while central banks are on course to start winding back on years of cheap money.
Investors have kicked off 2018 off in buoyant mood as the world economy stirs to life and job creation, particularly in the US, picks up.
After Tuesday’s broad advances, Asia was given a strong lead from Wall Street where technology firms were the standout performers—with Apple, Amazon and Google-parent Alphabet all gaining close to two percent.
The tech-rich Nasdaq and the S&P 500 ended at all-time highs while the Dow ended just shy of a new record.
Hong Kong was up 0.1 percent in the afternoon, building on a six-day rally, while Shanghai closed up 0.6 percent, Sydney gained 0.2 percent and Singapore put on 0.5 percent. Seoul rose 0.3 percent, with investors given some cheer by North Korea’s promise to restore a hotline with the South and Kim Jong-Un’s softer tone towards its neighbour.
Tech firms were among the big winners, with AAC Technologies up one percent in Hong Kong, adding to Tuesday’s 7.5 percent jump, while Tencent rose 0.5 percent. Samsung climbed more than one percent in Seoul.—AFP