Publications
Partners
Hong Kong - Asian markets were mixed on Wednesday following fresh records on Wall Street as Donald Trump's tax-cut plans moved a step closer, while the pound extended gains on reports of a breakthrough in Brexit talks.
Traders brushed off early worries caused by another North Korean missile test, while Bitcoin continued its surge to break the $10 000 mark for the first time.
New York traders cheered a forecast-beating US consumer confidence survey and news that a key senate committee agreed to a fiscal overhaul plan late on Tuesday, fuelling a rally to new all-time highs on the city's three main indexes.
The move allows the president's much-vaunted proposals to be debated on the floor of the upper chamber, providing relief to many who had feared opposition from some Republicans would kill it.
Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers, said the agreement "is a significant milestone and the chances of a negotiated version being implemented this year is likely.
"There is a lot of optimism being priced in currently," he said, but warned "delays or a rejection of the bill will result in a sharp correction in December."
The dollar rallied in US trade on the news and it managed to hold its gains in Asia, buying ¥111.61, having dipped below ¥111 at one point on Tuesday. But seemingly dovish comments from Trump's pick to assume the Federal Reserve chair kept the greenback from surging.
The weaker yen helped the Nikkei end the morning 0.4% higher, while Sydney added 0.7% and Singapore put on 0.1%. Seoul was flat.
However, ongoing worries about China's crackdown on risky and speculative trading dragged Hong Kong 0.2% down and Shanghai was 0.5% lower.
Bitcoin breaks $10 000
Analysts said there is some concern that in its attempts to settle surging mainland markets while also preventing cash from leaving the country, Beijing will look to stem the amount dealers can invest in Hong Kong.
"If money keeps going south to Hong Kong, then for a closed-end system such as (China's) market, it will present a liquidity drainage," Hao Hong, chief strategist at Bocom International Holdings in Hong Kong, told Bloomberg News.
"Now that they have a policy stance to slow down the flows, and Hong Kong is coming near the 30 000 resistance, you may see money slowing down."
The pound edged up after Tuesday's rally following reports of a British-EU deal on a Brexit bill, meaning they can now move to talks on a post-split trade deal.
"This headline is fantastically positive news for the beleaguered pound," said Stephen Innes, head of Asia-Pacific trading at OANDA. "The financial settlement should pave the way to possible breakthrough in negotiations in December overcoming investor’s biggest fears, a hard Brexit."
Bitcoin, which has ploughed to continuous records in recent weeks, finally broke $10 000 on Wednesday.
The virtual currency hit a high of $10 209 in Asia with some commentators suggesting it is being bought as an alternative with mainstream global markets valued too high.
But there is a worry the rise - it has surged more than tenfold since its 2017 low in mid-January - will result in a massive correction.
"This is a bubble and there is a lot of froth. This is going to be the biggest bubble of our lifetimes," warned hedge fund manager Mike Novogratz at a cryptocurrency conference earlier this week.
