Tuesday , May 30 2023

Asia shares rise for one month high


Tokyo – Asian stocks rose on Thursday to a one-month high, as investors eased moving to the US medium-term election without major political surprises on the Wall Street rally, while the dollar returned and pulled out the two-second-weekly fall.

MSCI's largest Asia-Pacific stock index outside Japan grew by 0.5%.

Hang Seng improved Hong Kong by 0.9% and the Shanghai Composite index rose 0.35%.

Australian stocks rose by 0.5%, South Korean pockets increased by 1.4%, and Japan's Nikkei reached 1.9%.

Wall Street's key figures on Wednesday increased by more than 2%, driven by the technology and healthcare sector, since the market was ineligible after the US mid-term elections when the Democrats overthrew the House of Representatives and the Senate of Republican Assistants.

"By continuing to work further, we think that avoiding uncertainty and achieving the expected outcomes should be supportive of risk assets," Goldman Sachs analysts said.

Although the split to Congress, President Donald Trump will be more difficult to implement new legislation, such as reducing additional taxes, investors do not see the recent tax cuts and deregulation.

"The main point after the mid-term elections is that the US stocks showed that they have created immunity from higher profits. The recent long-term profitability was at this level a month ago, they helped to bring about a significant drop in stocks," said Junichi Ishikawa, senior forex strategist IG Securities in Tokyo.

"A solid US fundamentals will support this trend in stock and profit will grow in tandem, which should also support the dollar in the long run."

The yield on 10-year bonds has risen to 3.25% on Wednesday, the highest since October 9th with the Wall Street rally, which reduces demand for secure debt. Lastly, it was 3.23%.

The dollar index rose against the basket of six major currencies by 0.2% to 96,188, while on Wednesday it was withdrawn from 95,678, the lowest since October 22.

The fact that the price of gold was low was due to the reaction to the results of the United States mid-term elections, when the Congress, which saw the Brief Falling Fiscal Stimulus, was divided.

Some emphasis was placed on the Federal Reserve's monetary policy later on Thursday. However, the Fed will not be able to raise interest rates until the next meeting in December and analysts are expecting this meeting to have a limited market impact.

In 2018, the central bank has grown three times in the monetary policy field, while in September it has increased.

"The united congress is unlikely to significantly change the treasury hike in the near future and the Fed will be biased to continue raising rates until the data or financial conditions in turn," wrote the Strategy Bank of America Merrill Lynch.

The euro rose by 0.05% to $ 1.1432, followed by a steep rise from the first third, reaching $ 1,1500.

The dollar was a shadow that was higher than ¥ 113.59 yen, and the one-month maximum of $ 113.82 reached the previous day.

On futures markets, United States oil futures rose by 0.05% to $ 61.70 a barrel after falling on the Wednesday morning of the eight-month minimum bid of € 61.20.

The volume of Brent crude oil dropped to 0.08% to $ 72.01 a barrel after the 1.4% lost the previous day.

Oil prices, which fought after the US oil increase, reached another record and domestic stocks increased more than expected.


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