Asian Stocks Close Higher as Japan Heads to Polls Sunday

October 21, 2017
Asian Stocks Close Higher as Japan Heads to Polls Sunday

By Investors Hub

Asian stocks ended mostly higher on Friday after the US Senate approved a fiscal 2018 budget resolution, taking a step forward towards overhauling the US tax code.

Overall gains remained muted, however, as investors awaited the outcome of Sunday’s Japanese general election and China’s central bank governor Zhou Xiaochuan warned that excessive optimism could lead to a “Minsky moment.”

The US dollar weakened against its rivals after media reports suggested that President Donald Trump is leaning toward nominating Federal Reserve governor Jerome Powell to succeed Janet Yellen.

Investors also kept an eye on political tensions in Spain as a deadline set by Madrid for a final decision on independence approaches.

Japanese shares rose for the 14th straight session to post their longest winning streak since January 1961, as the yen remained weak on hopes that Prime Minister Shinzo Abe’s ruling coalition will win Sunday’s general election.

The Nikkei 225 Index inched up 9.12 points or less than a tenth of a percent to 21,457.64 while gaining 1.4 percent for the week to post its sixth straight weekly gain. The broader Topix also ended little changed with a positive bias.

While exporters ended mixed, suppliers to Apple (AAPL) like Murata Manufacturing and Alps Electric fell about 2 percent on signs of weak demand for Apple’s iPhone 8 models.

Chinese shares rose slightly but ended the week lower on concerns over slowing growth. The benchmark Shanghai Composite Index crept up 9.33 points or 0.3 percent to 3,378.65 but ended the week down about 0.4 percent.

Hong Kong’s Hang Seng Index jumped 328.15 points or 1.2 percent to 28,487.24. Hong Kong’s jobless rate stood at 3.1 percent in the July to September period, the same rate as seen in three months to August, the Census and Statistics Department reported.

Australian shares eked out modest gains after the U.S. Senate passed a budget that will pave the way for introducing a tax reform bill.

The benchmark S&P/ASX 200 rose 10.90 points or 0.2 percent to 5,906.99, closing above 5,900 for the first time since May, while the broader All Ordinaries index finished 0.2 percent higher at 5,968.60.

National Australia Bank edged up 0.3 percent and Commonwealth Bank added 0.3 percent as their chief executives face a parliamentary inquiry. Mining giant BHP Billiton rose half a percent and smaller rival Fortescue Metals Group rallied 1.7 percent despite iron ore prices falling overnight. Vocus Group soared as much as 6.8 percent ahead of its investor day on Monday.

Meanwhile, housewares retailer Adairs lost 2.2 percent after it was fined A$66,000 fine for an alleged disclosure breach. Energy stocks finished flat to slightly lower after oil prices fell over 1 percent overnight to snap a four-day winning streak.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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