Share

Asian markets surge following Wall Street records

Hong Kong - Asian markets surged on Monday as investors tracked last week's record-breaking end on Wall Street, where the three major indices all hit fresh highs.

The rally comes during a strong earnings season, with major companies signalling higher profits in the wake of the tax cuts recently enacted in the United States.

With more data from top companies including Alibaba and Google's parent company Alphabet expected in the coming week, analysts say indications of improved profits could sustain the positive sentiment in the markets.

"A data-packed week and stock reporting seasons around the globe should see market focus turn to the numbers," said Michael McCarthy, chief strategist at CMC Markets in Sydney.

But he warned that "a weakening US dollar may prove a brake on any investor exuberance."

The greenback remains under pressure, and could experience more turbulence with several major announcements coming up this week, including US President Donald Trump's State of the Union address.

"We should expect more two-way uncertainty entering the fray this week which could make for some touch and go moments," said Stephen Innes, head of Asia-Pacific trading at OANDA. "But for now, the markets remain comfortable to maintain a longer-term soft USD bias."

Markets could also be impacted this week by the outcome of a scheduled US Federal Reserve meeting.

The Fed is expected to leave the benchmark US interest rate untouched at the meeting, but economists say the changing composition of the policy committee could point to faster rate hikes in 2018.

In early trade on Monday, Hong Kong was up 0.4%, Sydney rose 0.6% and Tokyo gained 0.5%.

Meanwhile, Seoul surged 1.1% and Shanghai gained 0.2%.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders