Asian Stock Markets
Asian shares crept toward all-time peaks on Monday after Wall Street
boasted its best start to a year in over a decade, with brisk economic
growth and benign inflation proving a potent cocktail for risk
appetites.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.2 percent having climbed 3.1 percent last week, its strongest performance in six months.
At 588.55, the index is within spitting distance of its record top of 591.50 hit in November 2007.
The Philippines .PSI is already at a record, while Australian stocks eked out another decade top.
Japan's Nikkei .N225 was closed for a holiday but last week touched its highest since 1992.
E-Mini futures for the S&P 500 ESc1 edged up 0.1 percent while spreadbetters pointed to opening gains for Europe.
Friday’s U.S. jobs report did nothing to challenge that outlook.
While payrolls missed forecasts, the report was perfect for equities given unemployment stayed low but with little sign of the inflationary pressures that would make the Federal Reserve more aggressive in tightening policy.
Wall Street has already enjoyed its best start to a year in more than a decade, with the Dow .DJI up 2.3 percent last week and the S&P 500 .SPX 2.6 percent. The tech-heavy Nasdaq .IXIC led the charge with a rise of 3.4 percent.
The quarterly U.S. earnings season kicks off this week with the Street expecting solid growth of around 10 percent, though many companies are also likely to be announcing one-off charges to account for recent tax changes.
The next major data hurdles will be U.S. consumer prices and retail sales on Friday. In Asia, China reports December inflation on Wednesday and international trade numbers on Friday.
In currency markets, the dollar has steadied for the moment after a rocky couple of weeks.
With economic activity picking up globally, the dollar .DXY has been undermined by expectations the Fed will not be the only central bank tightening policy this year.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS added 0.2 percent having climbed 3.1 percent last week, its strongest performance in six months.
At 588.55, the index is within spitting distance of its record top of 591.50 hit in November 2007.
The Philippines .PSI is already at a record, while Australian stocks eked out another decade top.
Japan's Nikkei .N225 was closed for a holiday but last week touched its highest since 1992.
E-Mini futures for the S&P 500 ESc1 edged up 0.1 percent while spreadbetters pointed to opening gains for Europe.
Friday’s U.S. jobs report did nothing to challenge that outlook.
While payrolls missed forecasts, the report was perfect for equities given unemployment stayed low but with little sign of the inflationary pressures that would make the Federal Reserve more aggressive in tightening policy.
Wall Street has already enjoyed its best start to a year in more than a decade, with the Dow .DJI up 2.3 percent last week and the S&P 500 .SPX 2.6 percent. The tech-heavy Nasdaq .IXIC led the charge with a rise of 3.4 percent.
The quarterly U.S. earnings season kicks off this week with the Street expecting solid growth of around 10 percent, though many companies are also likely to be announcing one-off charges to account for recent tax changes.
The next major data hurdles will be U.S. consumer prices and retail sales on Friday. In Asia, China reports December inflation on Wednesday and international trade numbers on Friday.
In currency markets, the dollar has steadied for the moment after a rocky couple of weeks.
With economic activity picking up globally, the dollar .DXY has been undermined by expectations the Fed will not be the only central bank tightening policy this year.
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