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

Emerging Asia propels world stocks to new high

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Jul 19, 2017
03:09 pm
Reuters

A weak U.S. dollar combined with upbeat Chinese data to lift emerging market and Asian shares to levels not seen in more than two years and global stocks to an all-time high on Wednesday.

With the world`s most widely-used currency near 10-month lows, there has been an indirect loosening of financial conditions for emerging markets which also serves to support riskier assets such as equities.

After decent gains in Asia on the back of postive signs from global economic powerhouse China this week, MSCI`s world stocks index looked set for a ninth day of gains which would mark its longest winning streak since October 2015.

"Most emerging markets are doing quite well at the moment, especially in Asia. The figures for China are positive," said Marijke Zewuster, Head EM research, ABN AMRO.

"If you look at the underlying figures they are relatively strong at the moment."

The U.S. dollar - which dropped sharply on Tuesday after the collapse of a healthcare bill dealt a blow to President Donald Trump`s ability to deliver promised fiscal reforms - could muster little more than tentative gains on Wednesday.

Against a basket of other major currencies, it was up 0.3 percent at 94.878, but still down around 7 percent on the year and within sight of Tuesday`s low of 94.476.

Analysts said the slight gains in the dollar were down to expectations the European Central Bank and the Bank of Japan may strike dovish tones when they meet on Thursday which could dent recent strength in the euro and the Japanese Yen.

The ECB is expected to adjust their language but substantive changes to their policy will likely come later in the year. The BOJ is expected to raise its growth forecast but cut its inflation outlook, underlining the cautious tone adopted recently by major central banks.

The euro inched down against the dollar, having made a 14-month top on Tuesday.

The diminished prospect of fiscal spending in the U.S. has been a boon to bonds, especially as a run of soft U.S. inflation readings had lessened the risk that the Federal Reserve would need to be aggressive in removing its stimulus.

Yields were broadly lower across the euro zone for a second straight day on Wednesday, with U.S. Treasury yields trading near three-week lows.

"The question marks over U.S. reform on the one hand, and the underlying economic growth momentum on the other hand are likely to keep the U.S. within its current goldilocks scenario for longer," wrote analysts at Morgan Stanley in a note.

"Globally, financial conditions tend to improve when the dollar is weak and vice versa," they added. "The falling dollar – still the globe`s major reserve and funding currency – tends to see risk appetite flourishing."ASIAN GAINS

While European stocks made a modest 0.4 percent gain, supported by a slew of upbeat earnings from firms, there were bigger gains in Asia and emerging markets.

Those gains come on the back of data this week which showed China`s economy expanding at a faster-than-expected 6.9 percent clip in the second quarter, setting the country on course to comfortably meet its 2017 growth target.

MSCI`s index of Asia-Pacific shares outside Japan and its index of emerging market shares were both up 0.5 percent at their highest since April 2015.

Shanghai`s blue-chip CSI300 index rose 1 percent and back toward an 18-month peak, while Australia`s main index added 0.9 percent. The strength of the yen limited Japan`s Nikkei to a rise of 0.1 percent.

After making decent gains on Tuesday as the dollar dropped, oil prices edged lower after a rise in crude inventories and ongoing high output from OPEC producers revived concerns of a fuel supply overhang.

(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

7th Pay Commission: DA, DR calculation for central government employees, pensioners—Here is what they will get from July 1

ICSE Class 10, Class 12 exam 2021: After CBSE cancels Class 10 exam, CISCE to soon take decision on ICSE board exams 2021

NEET PG 2021 exam: After CBSE, NEET aspirants want exam to be postponed; decision on ICSE Class 10, Class 12 exams likely soon

CBSE Class 10 Class 12 Board Exams – Students, Parents welcome Govt’s Decision to Cancel CBSE Board exam 2021

#ZBizExclusive: Anil Singhvi says SAIL steps closer to divestment, receives bids for 2 plants

BEWARE! Rs 5500 traffic challan from today! Do not violate THIS rule or cops will slap penalty; know what is HSRP

YES Bank stock! Expert suggests Rs 17-18 target price for this lender

Gold Price today 15-04-2021: Expert says buy for a target of Rs 48600 - money making tip

Expert says Buy Wipro with price target of Rs 485 - Rs 525, keep Stop-Loss at Rs 390

Gold Price today 15-04-2021: Rs 50,000! What should you do as Corona pandemic rages; expert REVEALS

  • 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