ALSO READGlobal Markets: Wall Street rises with dollar as euro weakens Asia shares cautious as mood turns skittish Asian shares bounce after losses, dollar capped by weak U.S. inflation Asia stocks brush off Wall Street slide after Trump's comments, dollar sulks Asia firms on Wall Street cheer after U.S. jobs data beats forecasts
By Wayne Cole
SYDNEY (Reuters) - Asian shares crept toward all-time peaks on Monday after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetites.
At 588.55, the index is within spitting distance of its record top of 591.50 hit in November 2007.
The Philippines is already at a record, while Australian stocks eked out another decade top. Japan's Nikkei was closed for a holiday but last week touched its highest since 1992.
"It was the global synchronised growth that drove earnings and equity markets higher last year and the global economy has entered 2018 firing on all cylinders," said analysts at Bank of America Merrill Lynch, predicting the global economy could expand at 4 percent or more this year.
"This growth is keeping our quant models bullish and driving earnings revisions to new highs," they added. "We stay long outside the U.S., with Asia ex-Japan and Nikkei our growth plays, Europe still for yield."
Friday's U.S. jobs report did nothing to challenge that outlook.
While payrolls missed forecasts, the report was perfect for equities given unemployment stayed low but with little sign of the inflationary pressures that would make the Federal Reserve more aggressive in tightening policy.
Wall Street has already enjoyed its best start to a year in more than a decade, with the Dow up 2.3 percent last week and the S&P 500 2.6 percent. The tech-heavy Nasdaq led the charge with a rise of 3.4 percent.
The quarterly U.S. earnings season kicks off this week with the Street expecting solid growth of around 10 percent, though many companies are also likely to be announcing one-off charges to account for recent tax changes.
INVESTORS STUFFED WITH EUROS
In currency markets, the dollar has steadied for the moment after a rocky couple of weeks.
On Friday, surprisingly strong Canadian jobs data stoked speculation that interest rates there could rise as early as next week and sent the local currency to a three-month peak.
Upbeat euro zone data has likewise underpinned the single currency at $1.2027, though it has so far failed to clear major chart resistance at the September top of $1.2092.
Japanese Prime Minister Shinzo Abe on Sunday called on central bank governor Haruhiko Kuroda to keep up efforts to reflate the economy, but added he was undecided on whether to reappoint Kuroda for another five-year term.
Spot gold made a 3-1/2-month high last week and was trading at $1,320.16 an ounce on Monday.
Brent was last up 13 cents at $67.75, while U.S. crude rose 16 cents to $61.60 per barrel.
(Editing by Sam Holmes and Richard Borsuk)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)