Asian stocks
climbed to a fresh-two year high on Tuesday on the back of an overnight
rise in Wall Street, while oil extended gains after major producers
Saudi Arabia and Russia pledged to push for an extension of supply cuts
into 2018.
Investors
in regional equities, however, are growing increasingly wary as
valuations look stretched and with the latest rally taking place in thin
volumes and led by just a few sectors.
Regional stock markets were broadly mixed with Chinese stocks leading laggards and Thailand among the best performing stock market of the year. Europe is set to follow with index futures pointing to a mixed start.
n Hong Kong, the broader market rose to its highest level since June 2015 on the back of extended buying into Chinese lenders and market heavyweight Tencent before declining 0.3 percent.
With overall volumes declining and share valuations looking extremely stretched, investors are growing cautious. Hong Kong's technology sector, for example, is the most expensive, trading at a price-to-earnings multiple of more than 42 times.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat after hitting its highest level since June 2015 in opening trades.
Oil steadied around the $52 per barrel level after hitting its highest level in more than three weeks on Monday, after Saudi Arabia and Russia said that supply cuts needed to last into 2018, a step towards extending an OPEC-led deal to support prices for longer than first agreed.
Global benchmark Brent crude rose 0.4 percent to $52 per barrel. U.S. West Texas Intermediate (WTI) crude futures were up 0.4 percent at $49.03 per barrel.
Regional stock markets were broadly mixed with Chinese stocks leading laggards and Thailand among the best performing stock market of the year. Europe is set to follow with index futures pointing to a mixed start.
n Hong Kong, the broader market rose to its highest level since June 2015 on the back of extended buying into Chinese lenders and market heavyweight Tencent before declining 0.3 percent.
With overall volumes declining and share valuations looking extremely stretched, investors are growing cautious. Hong Kong's technology sector, for example, is the most expensive, trading at a price-to-earnings multiple of more than 42 times.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat after hitting its highest level since June 2015 in opening trades.
Oil steadied around the $52 per barrel level after hitting its highest level in more than three weeks on Monday, after Saudi Arabia and Russia said that supply cuts needed to last into 2018, a step towards extending an OPEC-led deal to support prices for longer than first agreed.
Global benchmark Brent crude rose 0.4 percent to $52 per barrel. U.S. West Texas Intermediate (WTI) crude futures were up 0.4 percent at $49.03 per barrel.
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