Established by Fathi Ibrahim Bayoud 2005 - Homs

Asian shares touch 10-year peak as Wall St. hits records

Business | 2017-09-13 09:45:42
Asian stocks wobbled on Wednesday but still marked a 10-year peak, cheered by record highs on Wall Street, while shares of Apple Inc’s (AAPL.O) suppliers dipped following the release of the latest iPhone.

Futures suggested a downbeat start to the European trading day, with the Eurostoxx 50 STXEc1 down 0.1 percent, DAX futures FDXc1 also down 0.1 percent and FTSE futures FFIc1 0.2 percent lower.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was slightly lower, after earlier poking up to its highest level since October 2007. Australian shares ended fractionally higher and South Korean shares .KS11 rose 0.2 percent.

On Tuesday, the S&P 500 .SPX, Dow Jones industrials .DJI and Nasdaq Composite .IXIC all finished at record levels as investors' concerns faded about North Korean tensions as well as the impact of Hurricane Irma.[.N]

“In the U.S. we had a bit of unwinding of the fear trade that it’s been going through and that’s flowing through to us as well,” said Mathan Somasundaram, a market portfolio strategist with Blue Ocean Equities in Sydney.

U.S. gains were kept in check, however, by a decline in shares of Apple Inc (AAPL.O) after it unveiled its newest line of iPhones. Apple fell 0.6 percent but pared some losses in afterhours trade.

The new iPhone’s sales will have repercussions beyond Apple for many suppliers as well as its rivals.

Taiwan’s benchmark dropped 0.7 percent, as shares of Apple supplier Taiwan Semiconductor Manufacturing Co (2330.TW), the world’s biggest contract chip maker, dipped 0.5 percent, while Hon Hai Precision Industry (2317.TW) was 1.3 percent lower.

In China, Apple-linked stocks such as Zhejiang Crystal Optech (002273.SZ) tumbled 6.4 percent and Goertek (002241.SZ) shed 3.7 percent. The blue-chip CSI300 index .CSI300 was slightly up, while the Shanghai Composite Index .SSEC was flat in afternoon trade.

Japan's Nikkei stock index .N225 added 0.5 percent to a one-month high, getting a tailwind as the yen stayed far away for its recent peaks.

Yutaka Miura, a senior technical analyst at Mizuho Securities, said the weaker yen had prompted investors to cover short positions that they took during recent bouts of risk aversion.

“The Nikkei is not rising on fundamentals at the moment, but rather on supply and demand moves,” he said.

The dollar inched 0.1 percent lower on the day to 110.11 yen JPY=, but remained well above last Friday's 10-month low of 107.32 plumbed when Hurricane Irma loomed and investors braced for the possibility of another missile or nuclear test to mark North Korea's founding day on Sept. 9.

The yen tends to benefit during times of economic and political uncertainty due to Japan’s net creditor nation status, and the expectation that Japanese investors would repatriate assets during times of crisis.

Investors remained wary of a flare-up of tensions at any moment on the Korean Peninsula, with U.S. President Donald Trump saying on Tuesday that U.N. sanctions on North Korea this week were a “very small step,” and “nothing compared to what ultimately will have to happen” to deal with the country’s nuclear program.

North Korea remained defiant over the latest sanctions, vowing to redouble efforts to fight off what it said was the threat of a U.S. invasion.

The euro was up 0.1 percent at $1.1979 EUR=, while the dollar index .DXY was down 0.1 percent at 91.815, holding well above Friday's 2-1/2-year low of 91.011.

Meanwhile, bitcoin skidded 4.8 percent to $3,975.43 BTC=BTSP on the BitStamp platform, after Jamie Dimon, chief executive of JPMorgan Chase & Co (JPM.N), said on Tuesday that the crypto-currency "is a fraud" and will blow up.

Bitcoin slid 6.6 percent on Friday, after reports that China was about to shut down local crypto-currency exchanges.

Crude oil futures were mixed after gaining on Tuesday, when OPEC forecast higher demand in 2018 and Russia and Venezuela confirmed their commitment to a production-cutting deal to reduce the global crude glut. [O/R]

Brent crude LCOc1 slipped 0.2 percent to $54.18 per barrel, while U.S. crude CLc1 rose slightly to $48.25.

Additional reporting by Nicole Pinto in Bengaluru; Editing by Kim Coghill & Shri Navaratnam
Comments (0)

Post Your Comments

fill all fields below
*This confirmation code will prevent auto submit
X :Latest News
Iran says Europe's support for nuclear deal not enough: IRNA      EU sources deny report of proposed new nuclear deal with financial aid for Iran      Mass food poisoning at displaced camp in Idlib      Palestinian leader Abbas in hospital for third time in a week -officials      Islamic State quits Damascus enclave, regime media denies it      Polls open in Venezuela election boycotted by opposition      Kurdish militia launches wide conscription campaign      Ebola deaths rise to 26, says Congo health ministry