Asia shares mount 10-year high, Chinese shares mixed

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Europe

Asian shares scaled a 10-year high on Wednesday on the back of solid economic growth globally, while oil prices extended a bull run on hopes that major producers will maintain their output cuts.

European shares were expected to rise, with spread-betters looking at a higher opening of 0.4 percent in France’s CAC and 0.3 percent in Britain’s FTSE.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9 percent, led by a 1.3 percent jump in South Korea. Japan’s Nikkei soared 1.9 percent.

With the benchmark Shanghai Composite Index up 0.08 percent, the Chinese stocks closed mixed on Wednesday, at 3,395.91 points. The Shenzhen Component Index closed 0.15 percent lower at 11,350.32 points. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.16 percent to close at 1,872.75 points.

VCG Photo

Investors are focused on the progress of a US tax-cut plan being developed by President Donald Trump and fellow Republicans and on Trump’s announcement of the next head of the Federal Reserve.

“Hopes of US tax cuts, a slight easing in US long-term bond yields since late last month and a rise in oil prices are all positive for Asian shares,” said Yukino Yamada, senior strategist at Daiwa Securities.

South Korea’s economic growth accelerated to its fastest growth in seven years last quarter.

Russian manufacturing activity expanded in October at the slowest pace in four months, although business confidence remained positive, the Markit purchasing managers’ index (PMI) showed on Wednesday.

Trump’s decision on the Fed chair upstaged the start of its two-day policy meeting in Washington on Tuesday, although it is widely expected to leave interest rates unchanged in its statement on Wednesday.

Trump’s decision on the Fed chair is upstaging the start of its two-day policy meeting in Washington on Tuesday, although it is widely expected to leave interest rates unchanged in its statement on Wednesday. /VCG Photo

The advance reading of US GDP for July-Sept showed a healthy growth of 3.0 percent, well above the average of just above 2.0 percent since the financial crisis in 2008-09.

The US dollar’s index against a basket of six major currencies stood at 94.71 from last week’s three-month peak of 95.15. The euro was little moved at 1.1628 US dollars, though it kept some distance from its three-month low of 1.1574 US dollars touched on Friday after the European Central Bank’s stance was perceived to be more dovish than expected.

Oil prices extended a rally which began in early October, largely driven by hopes that oil producing countries will agree to extend an output cut at their meeting at the end of this month.

“Oil prices may have risen a bit too much already on expectations of the production cut extension. I would say Brent is likely to ease below $60 early next year,” said Tatsufumi Okoshi, senior commodity economist at Nomura Securities.

Source(s): AP ,Reuters ,Xinhua News Agency