LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Asia shares rise as investors look to burst of data for proof of 'goldilocks'

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Aug 01, 2017
09:09 am
Reuters

Asian shares ticked up on Tuesday as investors looked to a barrage of economic data around the world to confirm recent signs the global economy is in fine fettle with inflation staying well contained.

MSCI`s broadest index of Asia-Pacific shares outside Japan was up 0.5 percent, led by gains in financials and energy shares, while Tokyo`s Nikkei rose 0.2 percent.

On Wall Street, the Dow Jones Industrial Average rose 0.28 percent to end at a record high of 21,891.12 but the Nasdaq Composite pulled back 0.42 percent after recent rallies.

MSCI ACWI, an index of the world`s 47 stock markets, logged its ninth consecutive month of gains in July, the longest winning spell since 2003-04, on the back of expectations of solid global economic growth.

On the other hand, softening U.S. inflation in recent months prompted investors to bet the Federal Reserve will adopt a patient approach to further interest rate increases.

"The abundance of cheap money is perhaps a theme that is getting stale. Yet, that is the best explanation you could think of to explain the strength of shares and commodities today," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.

The CBOE volatility index, which measures implied volatility of stocks and is often seen as investors` fear gauge, stood near record low levels hit last week, partly as investors sell options to enhance low yields.

"The low level of the Vix is a testament that investors expect `goldilocks markets` to continue," said Shuji Shirota, head of macro economic strategy group at HSBC in Tokyo.

"Under such an environment, the dollar, which is a safe-haven asset, will continue to decline," he added.

Indeed, besides the United States, recent data from other parts of the world suggest a `goldilocks` scenario where growth is fast enough to create jobs but not so rapid that it would lead to runaway inflation.

A private survey showed growth in China`s manufacturing quickened in July, as output and new orders rose at the fastest pace since February on strong export sales.

South Korea`s trade data also showed the country`s exports grew at robust pace in July led by shipments of memory chips and electronic storage devices.

"Export prices of semiconductors is sharpening export growth, but it seems export volume is also increasing given that sales to India surged," said Park Sang-hyun, chief economist at HI Investment & Securities.

"July export growth shows global demand recovery is well on its way," he said.

All of these data will be followed by preliminary flash estimates of euro zone gross domestic product at 0900 GMT and U.S. spending and manufacturing data, due at 1230 GMT and 1400 GMT respectively.

In the currency market, the euro traded at $1.1824, having risen to as high as $1.1846, its best level since January 2015, with a test of $1.20 within sight.

It has gained almost 15 percent from its January 3 low of $1.0340, which was its weakest level since January 2003, on rising expectations that the European Central Bank will taper its stimulus next year.

The dollar also slipped to a 1-1/2-month low of 110.005 yen, and last stood at 110.12 yen, down 0.1 percent.

The Australian dollar gained 0.4 percent to $0.8031, helped by the strong Chinese data, ahead of the Reserve Bank of Australia`s policy announcement later in the day. The RBA is widely expected to keep interest rates on hold.

The Chinese yuan hit 10-month highs in both onshore and offshore trade.

The firing of U.S. President Donald Trump`s communications director, Anthony Scaramucci, on Monday over an obscene tirade, just over a week after naming him to the job, also cemented the perception of a White house in disarray, further dragging on the dollar.

An administration official said Trump`s new chief of staff, retired Marine Corps General John Kelly, who sources said was seeking to impose order and discipline on a White House riven with factions and backbiting, asked for Scaramucci`s removal.

Oil prices rose to two-month highs on Monday, on expectations of U.S. sanctions against Venezuela`s oil sector after Sunday`s election of a constitutional super-body in Caracas, which Washington denounced as a "sham" vote.

Oil prices maintained gains even after the U.S. Treasury Department late on Monday announced sanctions limited only to Venezuelan President Nicolas Maduro.

Brent crude futures traded at $52.70 per barrel after having hit a high of $52.92 on Monday.

Copper rose 0.2 percent to $6,380 per tonne, holding near Monday`s two-year high of $6,430 and its 2015 peak of $6,481.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

RESULTS TODAY: Expert says ACC price target is Rs 1948, stop-loss Rs 1750

NURECA Share Price hits 10% UPPER CIRCUIT: Know the reason WHY

CLSA says 2-wheeler recovery momentum slowing, downgrades Hero Motocorp, Bajaj Auto; maintains outperform on TVS Motor

Gold Price today 19-04-2021: Expert says rates may dip till Rs 47600-Rs 47500 levels

7th Pay Commission: DA, DR, TA calculation, salary change from July 1 and other updates for central government employees, pensioners

FREEJOBALERT! Tired of mainstream jobs? Earn up to Rs 1.5 Lakh with these 320 vacant posts at Sports Authority of India Recruitment 2021

ACC net profit up 74 pct YoY in Jan-March quarter at Rs 562 cr; Co maintains “cautious yet positive outlook”; See 7 takeaways from results

In chat with Anil Singhvi, Mehraboon Irani says 2nd Covid-19 wave could really affect markets

Glenmark Life Sciences IPO: Glenmark Pharma approves Rs 1,160 crore IPO; this is what experts say for this share

Mid-cap Picks with Anil Singhvi: Albert David, Grindwell Norton, Ineos Styrolution are Vikas Sethi recommendations today

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved