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TOKYO: November 29, 2018: Asian stocks rose on Thursday, reflecting Wall Street's gains, after the US Federal Reserve Chairman suggested that his rate-tightening cycle should near the end of his credit cycle. three years, reinforcing the interest for riskier assets.
The Spreadbetters expected European equities to rise, with the UK FTSE rising 0.5%, the German DAX 0.6% and the French CAC 0.65%.
Dollar and US Treasury yields dropped after Jerome Powell said on Wednesday that US key interest rates were "just below" neutral, less than two months after saying rates were probably "far away" from point.
The largest MSCI index of Asia-Pacific equities outside Japan rose 0.6%.
Australian equities gained 0.6% and Japan's Nikkei 0.4%. But the Shanghai Composite Index withstood the trend and slid 1%.
Gains in Asia have been tempered by investor anxiety in anticipation of the ambitious trade talks between US President Donald Trump and his Chinese counterpart Xi Jinping on Saturday on the sidelines of the G20 summit in Argentina.
ANZ economists have pointed out that the political hawks of the Trump administration who want Washington to take a firm stance against Beijing seem to be gaining the upper hand.
"They will want concessions from China, especially on what they perceive as an intellectual property theft and a forced technology transfer," ANZ economists wrote.
"Thus, it would seem that the prospect of the Trump-Xi meeting ends without lasting resolution of their differences is relatively high."
Analysts say any signs of thaw in US-China tensions could trigger a reflex rebound, but believe the move would be short-lived unless there are substantial concessions, especially if Xi can persuade Trump to postpone a sharp rise in labor rights. customs on the Chinese. goods to enter into force on 1 January.
The Dow rose 2.5% and the Nasdaq nearly 3% Wednesday, while the remarks of Powell have eased fears of an acceleration of the pace of rate increases in 2019. [.N]
"Stocks have advanced, with Powell suggesting lowering rate hikes as the economy continues to perform well," said Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities in Tokyo.
"The likelihood of a slower US monetary tightening has caused the dollar to fall against currencies, particularly the euro, which could soon benefit from a higher ECB rate."
The euro was up 0.15% to 1.1314 dollar after rising 0.7% the day before.
The dollar plunged 0.35% to 113.26 yen after being reversed after a two-week high of 114.00 overnight.
The Australian dollar, sensitive to the evolution of the risk sentiment in the broad sense, jumped more than 1% Wednesday and stood at 0.7319 USD for a gain of 0.15%.
The dollar index versus a basket of six major currencies collapsed to 96,731, after a loss of one day to the other of 0.6%.
The 10-year Treasury yield fell to 3.013%, its lowest level since Sept. 18, after Powell's comments. The two-year Treasury yield was down for the third consecutive session.
Oil prices offset some of the losses from the previous session, but rising US crude inventories and uncertainties surrounding an OPEC meeting next week have kept markets under pressure. [O/R]
The US crude futures price rose 0.3% to $ 50.41 a barrel, following a 2.5% decline the day before.
Brent fell 0.1% to $ 59.69 a barrel. It fell 21% this month, during which it hit a low of $ 58.41 in 13 months.
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