10 of the cheapest shares on the ASX today

Australian Stock Markets

Buying wonderful companies at fair prices is the mantra of Warren Buffett. But this is not how he has always been. Buying fair companies at wonderful prices is how Buffett started – a skill he learnt from Benjamin Graham.

Buffett refers to this approach as the cigar butt approach. It entails a focus on valuation in isolation of quality and growth.  

Carlisle has also demonstrated that (unless you are Warren Buffett) buying companies solely on valuation is more profitable than buying on a combination of price and quality.

This difference is equal to millions of dollars over several decades. So where are the fair companies available at wonderful prices on the ASX today? 

To find companies currently trading at wonderful prices, we have sorted ASX stocks over $300 million in market capitalisation by their Sonkin Ratio.

The Sonkin Ratio is a robust version of the Price to Earnings ratio. The Sonkin Ratio is simply the Enterprise value of a company divided by its operating earnings adjusted for tax. It can be expressed as: 

Sonkin ratio = (Market capitalisation + Cash – Debt) / EBIT(1 – Tax rate) 

The Sonkin Ratio is the multiple of tax-adjusted operating earnings an investor would pay for the stock. Or, how much an investor would have to pay for every dollar of operating earnings. 
Here are 10 of the cheapest companies on the ASX and their Sonkin Ratios. 

HT&E Ltd (ASX: HT1) – 3.05
Resolute Mining Limited (ASX: RSG) – 5.18
Retail Food Group Limited (ASX: RFG) – 6.80
Fortescue Metals Group Limited (ASX: FMG) – 6.90
Seven West Media Ltd (ASX: SWM) – 7.94
Myer Holdings Ltd (ASX: MYR) – 8.36
Sky Network Television Limited (ASX: SKT) – 10.31
Washington H. Soul Pattinson and Co Ltd (ASX: SOL) – 10.64
St Barbara Ltd (ASX: SBM) – 10.99
BlueScope Steel Limited (ASX: BSL) – 11.24

These are 10 of the cheapest stocks on the ASX over a market capitalisation of $300 million.

Of course, there are many and varied reasons for why they are cheap.

Distinguishing between those that represent bargain prices, and those that are companies in terminal decline is the difficult part. It helps if you are Warren Buffett. 

Asian currencies still cheap in real terms, analysts say

Asian currencies are cheap in historical trade-weighted terms despite a steady rise to multi-year highs over the past year on broad U.S. dollar weakness and strong flows into the region, analysts say. 

Malaysia’s ringgit, for instance, has appreciated more than 15 percent against the dollar since the beginning of 2017, but in real effective exchange rate terms (REER), it is still 5 percent below its 10-year average.

REER is calculated on a trade-weighted basis against a basket of currencies and adjusted for inflation.

The Japanese yen, Philippine peso and Indonesian rupiah are also trading below their 10-year averages.

The rise in regional currencies against their trading partners’ currencies over the past year has been much lower than their gains on the dollar, keeping them attractive even now, analysts say.

The South Korean won and the Thai baht have gained more than 12 percent each against the dollar since Jan 2017, but their REER rates rose just about 4 percent in that period.

China’s yuan and South Korean won’s REER rates are the highest in the region, trading at 122.6 and 110.7 respectively, according to a JP Morgan REER index based at 100 in 2010.

Asian exports have largely managed to absorb the rise in regional currencies while benefiting from robust global demand and a recovery in commodity prices.

China’s exports increased in 2017 for the first time in three years, while Japan’s exports saw their biggest growth in seven years.

Despite the baht gaining about 10 percent against the dollar, Thai exports grew 9.9 percent last year, the biggest rise in six years.

Regional trade momentum is set to continue this year with South Korea, for example, showing robust export growth in January driven by computer chips and petroleum products.

Nonetheless, the operating profits of Asian companies making much of their revenue from exports are expected to take a hit from the sharp rise in their domestic currencies. 

NZX seeks closer ties with Hong Kong Exchange with memorandum of understanding

New Zealand Stock Market News

NZX has signed a memorandum of understanding with Hong Kong Exchanges and Clearing to investigate broader regional product development, and both have one eye firmly on green finance and sustainability initiatives

The Wellington-based stock market operator and its Hong Kong counterpart want to promote market development in a range of areas including foreign investment, derivatives, depositary receipts, listed debt, dual listings, and exchange-traded funds, NZX said in a statement.

 The companies will also share information for green finance and offer staff secondments to bolster their understanding of each other's market.

This supports the New Zealand exchange’s commitment to increase its international presence as outlined in NZX’s recently released strategy NZX chair James Miller said. It highlights NZX’s desire to expand the reach and connection of the New Zealand market.

The deal follows soundings from New Zealand's stock market operator that it needed to make it easier for overseas companies to join NZX as a secondary listing among a handful of proposals to refocus the firm on driving shareholder value and reinvigorating the local capital market.

The tie-up on green finance also hits one of NZX's goals to leverage a growing drive for sustainability with the establishment of a green bond market.
 
NZX shares fell 1.8 percent to $1.11, having increased 2.8 percent over the past 12 months.
(BusinessDesk)

Dollar, bond yields rise on Trump tax plan; Asia stocks fall

The dollar and U.S. bond yields rose on Thursday after President Donald Trump proposed the biggest U.S. tax overhaul in three decades and as strong U.S. economic data supported the case for a Federal Reserve rate hike later this year.

The dollar’s strength pressured many emerging market currencies and bonds, helping drag down MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS 0.4 percent to one-month lows. South Korean 10-year yields hit a 2-year high. 

In contrast, Japan's Nikkei .N225 rose 0.55 percent, taking cues from gains on Wall Street, where the Dow Jones Industrial Average .DJI rose 0.25 percent while the S&P 500 .SPX gained 0.41 percent.

Small-cap U.S. shares, seen as benefiting the most from the proposed tax cuts, soared, with the Russel 2000 small-cap index notching a record high, rising 1.9 percent for its biggest one-day gain in almost six months. 

Trump offered to lower corporate income tax rates, cut taxes for small businesses and reduce the top income tax rate for individuals. 

Also helping to boost the dollar, the plan included lower one-time low tax rates for companies to repatriate profits accumulated overseas, which analysts say would lead to a temporary phase of sizable dollar buying. 

European stock futures suggested gains for those markets too, with FTSE futures FFIc1 up 0.18 percent and German DAX futures FDXc1 up 0.25 percent. 

Trump’s tax proposal faces an uphill battle in Congress, however, with his own party divided, and the plan already prompting criticism that it favors companies and the rich and could add trillions of dollars to the national debt. 

Asian shares wilt, yen firms as Korean tensions rise

Asian shares withered on Tuesday and the yen firmed against the backdrop of rising tensions on the Korean Peninsula, and as investors awaited fresh signals about the U.S. monetary policy outlook.

Futures suggested a subdued start to the European trading day, with the Eurostoxx 50 and FTSE futures both down 0.1 percent and DAX futures down 0.2 percent 

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 percent, following tech-focused losses on Wall Street. 

The risk-averse mood increased the appeal of safe-haven government debt, with the yield on benchmark 10-year Treasury notes edging down to 2.218 percent from its U.S. close on Monday of 2.220 percent. 

Federal Reserve Chair Janet Yellen is scheduled to speak later on Tuesday (1645 GMT) on “Prospects for Growth: Reassessing the Fundamentals”. 

Investors will be parsing her words for clues on whether the U.S. central bank will stick to its plan to raise interest rates in December. 

Australian shares were down 0.2 percent, while South Korean shares slid 0.3 percent. 

Japan’s Nikkei stock index finished 0.3 percent lower, pressured by a stronger yen. 

Apple Inc shed 0.9 percent on Monday after it was reported the company had told suppliers to scale back shipments of parts for its upcoming iPhone X. 

European Market Gained, Crude Oil Slid

In Europe, the pan-European STOXX 600 gained 0.6 percent, recovering nearly all the ground lost in the previous session and banking stocks .SX7P - which had led the risk-averse move lower on Tuesday - were also up 0.6 percent.

This followed gains in Asia: MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.6 percent while Japan's Nikkei .N225 rose 0.7 percent. 

Euro zone government bond yields, which fell to fresh lows on Tuesday, edged up on Wednesday as higher than forecast inflation in Spain was expected to be followed by similar data in Germany, defying the euro’s recent strength. 

Crude oil slid and gasoline futures touched their highest in over two years on Wednesday as flooding and damage from Tropical Storm Harvey shut over a fifth of U.S. refineries, curbing demand for crude while raising the risk of fuel shortages. 

U.S. gasoline futures RBc1 rose 5.8 percent to $1.8874, bringing gains this week to well over 10 percent. 

A rise in crude inventories as a result of refinery shutdowns, however, weighed on oil prices.

U.S. crude futures CLc1 fell 0.6 percent to $46.17 a barrel, after touching a five-week low on Tuesday. 

Global benchmark Brent LCOc1 slipped 0.5 percent to $51.67. 

Spot gold XAU= rose 0.1 percent to $1,310.86 an ounce on Wednesday. On Tuesday, the precious metal jumped to its highest since Trump was elected U.S. president.

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

Asian shares rose 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. 

Spreadbetters expected a mostly stronger start for European shares, forecasting Britain's FTSE .FTSE to open 0.5 percent higher, Germany's DAX to start up 0.1 percent and France's CAC .FCHI to open little changed. 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.7 percent, led by gains in financials and energy shares and coming within a whisker of last Thursday's heights not seen since January 2008, while Tokyo's Nikkei .N225 rose 0.2 percent. 

Hong Kong's Hang Seng .HSI added 0.7 percent, touching its highest since June 2015, and the Hang Seng China Enterprises index .HSCE was up 1.8 percent and at its highest since August 2015. 

Strong inflows from mainland investors via the stock connect program linking Hong Kong and the mainland are seen to be helping drive the recent rise in Hong Kong stocks. 

Australian stocks advanced 0.9 percent on the strength of financials and materials shares. 

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

MSCI ACWI .MIWD00000PUS, 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 CBOE volatility index .VIX, 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.

Asia stocks, dollar steady as investors await Fed clues

Asian stocks steadied on Wednesday and the dollar held firm as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans. 

The wait-and-see mood was expected to prevail in the European session, with spreadbetters forecasting Britain's FTSE .FTSE and France's CAC .FCHI to open effectively flat while predicting Germany's DAX .GDAXI to inch up 0.05 percent. 

The Fed will conclude its two-day meeting later on Wednesday, and is widely expected to keep interest rates unchanged. 

With a rate hike not in the picture this time, the focus will be on the Fed's statement, with markets looking for signs of when the central bank will begin paring its massive bond holdings and next raise rates. Its statement is expected at 1800 GMT.

Federal funds futures implied traders saw the chance of a Fed rate increase in September at about 8 percent and a December hike possibility at 48 percent. 

A more assertive policy message by the Fed, on the other hand, would likely lift U.S. yields and boost the dollar. 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed, but drew mild support after the S&P 500 .SPX climbed to an all-time high overnight on well-received results from McDonald's (MCD.N) and Caterpillar (CAT.N) in addition to bank share gains. 

Australian stocks gained 1 percent with a smaller-than-expected rise in local inflation supporting views that interest rates will remain at record lows for some time to come. The Australian dollar slipped 0.5 percent to $0.7896 AUD=D4. 

Japan's Nikkei .N225 added 0.5 percent after the dollar rallied against the yen JPY= overnight to pull away from seven-week lows. 

Shanghai .SSEC shed 0.4 percent on lingering fears of further regulatory tightening, while South Korea's KOSPI .KS11 lost momentum after touching a record high the previous day and slipped 0.3 percent.

Italy bank deal lifts Europe shares, dollar on back foot

Shares rose in Europe on Monday, with Italian banks gaining after a deal to wind up two failed regional lenders, while the dollar and U.S. bond yields held close to recent lows as subdued inflation raised questions over the outlook for monetary policy.

The-pan-European STOXX 600 share index rose 0.6 percent, led higher by banks .SX7P, after the agreement under which Italy's largest retail bank, Intesa Sanpaolo will take on the remaining good assets of collapsed Popolare di Vicenza and Veneto Banca.

Intesa shares (ISP.MI) rose 3.2 percent. The Italian government will pay it 5.2 billion euros and give it guarantees of up to a further 12 billion euros.

Investors have long viewed the Italian banking sector as a major cause of fragility within the euro zone. In index of Italian banks .FTIT8000 was up 2 percent and the broader Milan market .FTMIB rose 1.1 percent.

Italian 10-year government bond yields IT10YT=TWEB rose 0.2 basis point to 1.91 percent, widening the gap over benchmark German equivalents DE10YT=TWEB by 2 bps to 165.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.6 percent as tech led gains.

Trading was slow with many markets in the region closed for holidays to celebrate the end of Ramadan. Japan's Nikkei .N225 rose 0.1 percent.

Mainland Chinese shares rallied, with the CSI300 index .CSI300 rising 1.2 percent to hit its highest level in almost 18 months, after MSCI said the index provider could raise its weighting of China's mainland-listed 'A' shares.

Asia stocks steady after U.S. tech rout, yen slips as BOJ stands pat

Asian stocks steadied on Friday, taking in stride the resumption of the U.S. technology rout overnight, and European shares look set for a positive start following Thursday's losses. 

The Japanese yen remained near a two-week low against the dollar after the Bank of Japan left monetary policy unchanged as expected even as its U.S. counterpart signaled further tightening.

It was trading 0.3 percent lower at 111.23 yen JPY=D4 per dollar after the BOJ left in place its program to buy Japanese government bonds, and kept its short-term interest rate target at minus 0.1 percent and its 10-year government bond yield target at around zero percent.

As expected, the central bank offered a more upbeat view on private consumption and overseas economies, signaling its confidence that the recovery was gaining momentum.

Japan's Nikkei .N225 advanced 0.7 percent, narrowing its loss for the week to 0.3 percent.
"The market was relieved that there was no mention of an exit strategy, at least for now," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped about 0.1 percent, on track to end the week down 0.85 percent.

Financial spreadbetters expect Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI to all open up about 0.2 percent.

Overnight, the Nasdaq .IXIC led losses on Wall Street with a 0.5 percent drop, dragged lower by shares including Apple .AAPL.O and Alphabet (GOOGL.O) that tumbled on bearish analysts' reports. The S&P 500 technology index .SPLRCT also declined 0.5 percent.

The broader S&P 500 index .SPX fell 0.2 percent and the Dow Jones Industrial Average .DJI slipped 0.1 percent.

South Korea's KOSPI .KS11 slipped about 0.1 percent, surrendering early gains. The biggest company, Samsung Electronics (005930.KS) added 0.1 percent.

The second biggest firm, semiconductor concern SK Hynix (000660.KS), hit a 15-year high before pulling back to trade 0.2 percent lower.

The technology-heavy Taiwan index .TWII widened gains to 0.6 percent, with the biggest company, Taiwan Semiconductor Manufacturing Co. (2330.TW) jumping 1.7 percent and Apple supplier Hon Hai Precision Industry (2317.TW) surging 2.5 percent.

Asian shares rise but mood cautious ahead of event-packed week

Asian shares rose on Monday, taking their cue from gains on Wall Street after strong U.S. job data, though the mood was cautious as oil prices plunged to 3 1/2-month lows on fresh worries of oversupply.

A confluence of major events this week including an expected interest rate hike by the U.S. Federal Reserve, a potentially divisive election in the Netherlands and a Group of 20 (G20) finance ministers' meeting kept many investors on edge.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.9 percent, while Japan's Nikkei .N225 edged 0.2 percent higher, led by gains in defensive shares.

European shares are expected to open down slightly, with spread-betters looking at falls of 0.1 percent in Germany's DAX .GDAXI and EuroStoxx50 .STOXX50.

Global stocks rose on Friday, with the MSCI's index of 46 markets .MIWD00000PUS gaining 0.5 percent, snapping six straight days of losses after the robust U.S. jobs report.

Solid February U.S. jobs data also made it all but certain that the Federal Reserve will raise rates on Wednesday.

U.S. interest rate futures <0#FF:> are pricing in about a 50 percent chance of another rate hike in June. By the end of 2017, a total of nearly three hikes were fully priced in, including the likely move this week.

The 10-year U.S. Treasuries yield US10YT=RR slipped a tad on Friday, partly as markets had already expected robust payroll figures.

Dollar firm, shares slip as Fed rate rise looms

The dollar clung to broad gains on Friday as the risk of an imminent U.S. interest rate hike slugged sovereign bonds and commodities, even managing to sour Wall Street's party as the reality of rising borrowing costs began to sink in. 

Spread betters pointed to opening losses for European stocks and E-mini futures for the S&P 500 ESc1 were off 0.3 percent.

Asian markets were mostly lower, with MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 0.9 percent in the biggest daily drop so far this year.

Australia fell 0.8 percent and Shanghai .SSEC 0.4 percent. Japan's Nikkei .N225 eased 0.7 percent as a weaker yen only helped limit some of the losses.

South Korean shares .KS11 dropped to a two-week low early as reports came in that China had ordered tour operators to stop selling trips to the country, amid rising tensions over the deployment of a U.S. missile-defence system.

A chorus line of Fed officials singing of the need for higher rates has seen the implied probability of a move this month shoot to 74 percent, from just 30 percent at the start of the week. FEDWATCH
Fed Chair Janet Yellen and Vice Chair Stanley Fischer are both due to speak later on Friday and are expected to stick to the same tune.

Caterpillar (CAT.N) was among the biggest casualties, shedding 4.2 percent on news that federal law enforcement officials searched its Illinois facilities.

The prospect of a Fed hike on March 15 saw yields on two-year Treasury notes US2YT=RR shatter their recent range to reach ground last trod in mid-2009.

With the European Central Bank still acting to suppress short-term euro rates, the spread between U.S. and German two-year yields yawned out to 214 basis points, the widest since early 2000 and up from a low of 183 in January.

That shoved the euro down to $1.0515 EUR= and set up a test of major support at the February low of $1.0492. The dollar likewise held at 114.18 yen JPY= and eyed the recent peak of 114.95. Against a basket of currencies, the dollar .DXY eased a fraction to 102.010 after touching its highest since Jan. 11.

Asian shares add to solid February gains, await Trump policy speech

Asian shares edged up on Tuesday, on track for a winning month and bolstered by gains on Wall Street as investors awaited a speech by U.S. President Donald Trump for signals on tax reform and infrastructure spending.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2 percent, up 3.6 percent this month nearly 10 percent for the year so far.

Australia's S&P/ASX 200 index was up 0.4 percent as financial shares gained, while China's Shanghai Composite Index added 0.3 percent.

Japan's Nikkei stock index got a tailwind from a weaker yen and rose 0.8 percent, on track to gain more than 1 percent for February and 0.7 percent for the year to date.

The dollar edged down 0.1 percent to 112.62 yen but still held above Monday's nadir of 111.920, which was its lowest since Feb. 9. The euro was steady on the day at $1.0586.

Hawkish comments from a U.S. Federal Reserve official also bolstered U.S. Treasury yields and underpinned the dollar.

Dallas Fed President Robert Kaplan said on Monday that the Fed might need to raise interest rates in the near future to avoid falling behind the curve on inflation.

The yield on benchmark 10-year U.S. Treasuries, which had slumped to more than five-week lows last week, stood at 2.370 percent in Asian trade, compared to their U.S. close of 2.367 percent on Monday.

Crude oil prices were largely steady, as expectations of higher U.S. crude production offset reports of high compliance with OPEC's production cut agreement.

U.S. crude was up 0.2 percent on the day at $54.18 per barrel, while Brent crude added 0.3 percent to $56.10.

Spot gold edged up slightly to $1,253.06 an ounce but remained shy of a 3-1/2-month peak scaled on Monday as investors awaited Trump's speech.

Asia gains as Wall Street extends record run, dollar slips

Asian stocks rose on Wednesday, joining a record-setting session for global markets as investors cheered upbeat factory activity in Europe and solid earnings on Wall Street. 

But the dollar dipped, reversing an earlier rise made on hawkish comments from Federal Reserve officials.

Spreadbetters expected the boon for equities to extend into the European day, predicting a higher open for Britain's FTSE, Germany's DAX and France's CAC.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, taking its cues from the world stock index rising to an all-time peak overnight.

South Korea's Kospi added 0.15 percent, Singapore advanced 0.7 percent and Hong Kong's Hang Seng rose 0.9 percent. Japan's Nikkei <.N225. bucked the trend and shed 0.1 percent.

The Dow rose 0.6 percent on Tuesday to notch a record closing high for the eighth straight session, lifted by strong earnings reports from Wal-Mart and Home Depot.

That followed a strong showing in European equities, which were boosted by upbeat German and French factory activity data, with Germany's DAX rising to its highest in nearly two years.

The euro, however, has not followed suit as the currency markets focused more on potential political turbulence in the euro zone.

The common currency was up a modest 0.1 percent at $1.0544 after losing more than 0.7 percent the previous day. Polls suggesting improving support for far-right French presidential candidate Marine Le Pen have undermined sentiment and weighed on the common currency.

The dollar had risen overnight following hawkish comments from Cleveland and Philadelphia Fed Presidents Loretta Mester and Patrick Harker.

Mester expressed comfort at raising rates at this point, while Harker reportedly said a March rate hike was on the table.

Financial markets are waiting on the Fed's Jan. 31-Feb. 1 policy meeting minutes due later in the day for fresh hints on the central bank's stance toward interest rates.

HSBC slump eclipses punchy euro zone growth signals

Weak earnings trumped strong economic data for European stocks on Tuesday, as investors took their cue from banking giant HSBC's (HSBA.L) surprise slump in profits rather than stellar reports on the euro zone economy.

Europe's benchmark index of 300 leading shares .FTEU3 fell 0.2 percent to 1,459 points, with the region's banking index down as much as 2 percent in early trade .SX7P.

The biggest drag was British-based HSBC, Europe's largest bank by assets. Its shares fell 6 percent, on track for their biggest fall since August 2015, after the bank said pre-tax profits last year slumped 62 percent, far more than analysts had expected.

The dollar gained ground on the world's major currencies, in line with a tentative move back up in U.S. bond yields ahead of minutes from the Federal Reserve's latest meeting which could offer signals on the future pace of interest rate hikes.

Britain's FTSE 100 .FTSE bore the brunt of London-listed HSBC's troubles, falling 0.4 percent. That was double the decline on France's CAC 40 .FCHI, while Germany's DAX .GDAXI was up 0.1 percent.

"HSBC is the first of several major UK banks to report this week, and given this morning's miss there will likely be greater levels of caution heading into Lloyds, Barclays and RBS's results in the coming days," XTB's Cheetham said.

MSCI's world stock index slipped 0.1 percent .MIWD00000PUS and MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was also down 0.1 percent, consolidating below a 19-month peak hit last Thursday.

China's blue-chip index .CSI300 rose to its highest in over two months on Tuesday, extending gains from Monday - its best day in six months - on reports that pension funds will begin pumping funds into the country's stock markets.

Asia shares adrift for U.S. holiday, focus on Unilever

Asian share markets were mixed on Monday as political uncertainty globally kept the mood cautious, while the U.S. dollar dithered in a tight range ahead of a busy week for Federal Reserve events.

Turnover was light with U.S. markets closed for the Presidents Day holiday. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.1 percent and back toward a 19-month peak reached last week.

Japan's Nikkei .N225 went flat after domestic data showed exports disappointed in January even as imports outpaced forecasts.

Shanghai stocks .SSEC added 0.9 percent and expectations of solid economic growth in China kept commodities such as copper and iron ore well bid.

Spreadbetters predicted opening gains of 0.2 to 0.3 percent for bourses in Europe while E-mini futures for the S&P 500 ESc1 added 0.1 percent.

Shares in Unilever Plc (ULVR.L) could retreat after U.S. food company Kraft Heinz Co (KHC.O) withdrew its proposal for a $143 billion merger. Unilever's shares jumped 13 percent on Friday on news of the bid.

Wall Street ended last week on a roll, with all three major indexes making historic highs and the Dow Jones Industrial Average reaching a seventh straight record close. [.N]

A host of results from retailers are due this week, including Wal-Mart Stores Inc (WMT.N), Macy's (M.N) and Home Depot Inc (HD.N). The results will be watched for a read on spending as well as for commentary from executives on President Donald Trump's proposal to tax imports.

Asian stocks test new 19-month highs, some markets seen overvalued

Asian stocks inched to new 19-month highs on Thursday with thanks to an ongoing rally on Wall Street and bolstered by gains in Chinese stocks while the dollar came in for a bout of profit-taking after a recent bounce.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.2 percent to its highest since July 2015. It is up by a tenth this year thanks to more optimistic earnings expectations and an unwinding of bearish emerging market bets.

European stock markets are set to open steady to slightly higher according to index futures FFIc1 FDXc1

Wall Street pushed relentlessly into record-high territory on Wednesday, with the S&P 500 notching a seven-session winning streak.

Hong Kong stocks climbed to a fresh five-month high and swelling demand from mainland investors thanks to Beijing's drive to tackle growing asset price bubbles and the market's relatively cheap valuations.

Some investors said markets were looking slightly overvalued from a technical perspective after the bounce in recent weeks. For example, on a relative strength index (RSI), the MSCI Asia-ex Japan index was at its most overbought since 2015.

Though latest regional export data confirmed an upswing in economic activity in Asia was gathering pace, political uncertainty and anti-globalisation rhetoric from the U.S. made investors cautious of adding big positions.

The Dollar Index, U.S. Crude Down

The dollar index against a basket of major currencies chalked up its longest winning streak since May 2015. It was up 0.2 percent at 101.220 .DXY, near a four-week high of 101.380 scaled overnight.

Yellen's remarks rekindled expectations in some quarters for the Fed to raise rates three times in 2017 rather than twice. The futures market did not share this view amid doubts about the U.S. economy's ability to sustain three hikes.

According to CME Group's FedWatch data, U.S. interest rate futures FFZ7 implied an around 30 percent chance of at least three increases this year, little changed from the previous day - though the chance rose above 40 percent immediately after Yellen's comments.

"That kind of rate re-think is dollar-friendly, but too timid to derail the risk rally that starts in U.S. equities and spreads into emerging market currencies," said Kit Juckes, head of FX strategy at Societe Generale in London.

The greenback was a shade higher at 114.40 yen JPY= after rising to a two-week high of 114.50 the previous day, while the euro slipped to a one-month low of $1.05525 EUR=.

The dollar was supported as U.S. Treasury yields rose on the Fed Chair's comments, with the benchmark 10-year yield US10YT=RR climbing four basis points to an 11-day high of 2.50 percent the previous day. They were last at 2.475 percent.

The stronger dollar, which puts non-U.S. buyers of dollar-denominated commodities at a disadvantage, weighed on crude oil prices.

U.S. crude CLc1 was down 0.5 percent at $52.91 a barrel and Brent shed 0.4 percent to $55.75 a barrel LCOc1. Crude already came under pressure the previous day on evidence of surging U.S. stockpiles.

World stocks at 21-month highs on Yellen, U.S. outlook

World stocks hit 21-month peaks on Wednesday and the dollar rose for the 11th straight day, after Federal Reserve Chair Janet Yellen flagged a possible interest rate rise next month during upbeat comments on the U.S. economy.

The dollar notched up its longest winning streak in almost five years after Yellen said on Tuesday the Fed would probably need to raise rates at an upcoming meeting and that delaying could leave the central bank's policymaking committee behind the curve.

Propelled by record highs on Wall Street, MSCI's benchmark global equity index rose 0.25 percent to 442.4 points .MIWD00000PUS, its highest since May 2015 and two points off its record high. It has not fallen for six sessions, its longest such run since last July.

Europe's index of leading 300 stocks .FTEU3 rose 0.4 percent to 1,465 points, its highest since December 2015. Germany's DAX .GDAXI and Britain's FTSE .FTSE were both up 0.5 percent.

"At the margin, you could say that her (Yellen's) comments were probably tilted slightly towards to the hawkish side given her upbeat comments around the economic outlook," said Jim Reid, markets strategist at Deutsche Bank.

Yellen's remarks helped push Wall Street by boosting U.S. bank stocks. Goldman Sachs shares (GS.N) hit a record high, and are up 37 percent since the U.S. presidential election on Nov. 8.

Financials also led the way in Europe, with Credit Agricole (CAGR.PA) up more than 3 percent after France's biggest retail bank beat forecasts with a smaller than expected earnings drop in the fourth quarter.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.7 percent, rising to its highest since July 2015. Japan's Nikkei .N225 added more than 1 percent, buoyed by a weaker yen.

Asian Shares Rallied, Wall Street After U.S. President Donald Trump

Asian shares scale 1-1/2-year peak on China trade, Trump's tax cut talk

Asian shares rallied to an 18-month peak on Friday, as investors cheered upbeat Chinese trade data and strong gains on Wall Street after U.S. President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses.

The mood was expected to carry over into European trading, with financial spreadbetters predicting opening gains for Britain's FTSE, Germany's DAX and France's CAC.

China's January exports rose 7.9 percent from a year earlier, while imports jumped 16.7 percent, beating expectations and getting the economy off to a strong start in 2017 even as Asia braces for a rise in U.S. protectionism under President Donald Trump.

On the political front, Trump seemed to change tack and said he would honor the longstanding "one China" policy during a phone call with China's leader, a major diplomatic boost for Beijing which brooks no criticism of its claim to neighboring Taiwan.

China's strong trade "is related to the global pick-up in growth in the U.S., Europe and also emerging economies," said Jianguang Shen, chief economist at Mizuho Securities in Hong Kong.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5 percent to the highest level since July 2015, and was on track to gain 1.5 for the week. The Shanghai Composite Index was up 0.5 percent.

Japan's Nikkei stock index surged 2.5 percent thanks to the tailwind from a weaker currency, and added 2.4 percent for the week.

Wall Street's three main indexes notched record highs on Thursday after Trump said he would make a major tax announcement in a few weeks, though he offered no details.

U.S. economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month.