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Asia stocks near decade highs on buoyant Wall Street, kiwi rallies

Reuters  |  TOKYO 

By Shinichi Saoshiro

TOKYO (Reuters) - stocks hovered near a decade high on Thursday following another record breaking day on Wall Street, while the dollar rallied as hawkish-sounding statements by the country's central boosted the recently battered currency.

MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> was up a fraction and in close reach of a 10-year high set the previous day.

Australian shares <.AXJO> rose 0.2 percent and to their highest level since January 2008 while South Korea's KOSPI <.KS11> stood flat.

Japan's Nikkei <.N225> climbed 1.1 percent, reaching a high not seen since January 1992.

rose overnight thanks to a rally by videogame makers, with all three major indexes closing at record highs. [.N]

"It is a case of equity in emerging economies, already firm on internal demand and growth, being lifted by gains in those of developed economies," said Kota Hirayama, senior economist at SMBC Nikko Securities in Tokyo.

"Each country obviously has its own particular factors affecting local markets, but U.S. equities continue to drive overall risk sentiment."

In currencies, the dollar was a big mover, surging about 1 percent to a two-week high of $0.6974 .

The kiwi flew after the Reserve of (RBNZ) said early on Thursday that added fiscal stimulus and a lower local dollar would lead to faster inflation and likely an earlier rise in interest rate.

The central held rates steady at 1.75 percent as widely expected.

The dollar had sunk to a five-month low of $0.6818 in late October as a change in government unsettled investors.

The dollar index against a basket of six major currencies was steady at 94.899 <.DXY>.

The greenback edged up 0.1 percent to 113.975 yen , pulling away from a one-week low of 113.395 plumbed overnight, as long-term U.S. yields bounced back from three-week troughs.

The euro was little changed at $1.1593 and in sight of a 3-1/2-month low of $1.1553 set at the week's start.

U.S. crude oil futures was up 0.05 percent at $56.85 a barrel.

Government data showing a rise in domestic crude production had weighed on oil overnight but rising tensions in the Middle East limited the losses. [O/R]

U.S. crude rose slightly to $57.92 on Wednesday as tension flared between Saudi Arabia and Iran, while the Saudi crown prince tightened his grip on power.

Spot gold was little changed at $1,281.13 an ounce.

The precious metal had risen to a three-week high of $1,287.13 an ounce the previous day as a potential delay in the U.S. tax reform plan was seen moderating the Federal Reserve's interest rate hikes next year and support non-yielding gold. [GOL/]

(Reporting by Shinichi Saoshiro; Editing by Sam Holmes)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 09 2017. 06:58 IST