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Singapore - Asian equities rose, erasing earlier declines, as shares of software companies and chip makers gained on hopes that a weaker US dollar may improve their outlook for earnings.
The MSCI Asia Pacific Index rose for a seventh day in a row, adding 0.1% to 157.82 as of 11:38, heading toward its longest winning streak since March. The dollar slid to a 10-month low as Senate Majority Leader Mitch McConnell abandoned efforts to pass a broad Republican-only replacement of Obamacare.
"Broad decline in US dollar amid less aggressive bets on Fed rates has helped IT stocks," Jingyi Pan, market strategist at IG Asia said by phone in Singapore. "This week will remain about monetary policy. Japan may remain accomodative while Mario Draghi may stick to recent change in tone of being more hawkish."
Chinese stocks reversed losses in the last hour of trading Tuesday as the ChiNext gauge of small-cap shares climbed 0.8% after sinking 5.1% on Monday. Japanese stocks fell following a three-day weekend as the yen gained on worse-than-expected US economic data.
Investors in general want to buy the dips in Asia as there is still reasonable value and earnings outlook remains favorable, said Joshua Crabb, head of Asian equities at Old Mutual Global Investors.
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