Asian Shares Headed for 17-Month High After Dow Tops 20,000by
Higher bond yields drive gains in Japanese financials
Investors should be selective with valuations stretched: KTB
Asian stocks joined a rally in equities worldwide after the Dow Jones Industrial Average passed 20,000 for the first time amid expectations of stronger U.S. economic growth.
The MSCI Pacific Index rose 1 percent as of 4:15 p.m. in Hong Kong, headed for the highest closing level since July 2015. Ten out of 11 industry gauges advanced. Banks, insurers and brokerages led the Topix index higher after Japanese government bond yields rose Wednesday. Oil climbed as investors weighed output cuts from OPEC and other producing nations against expanding U.S. crude stockpiles.
“The rally momentum for global equities will keep going for some time after the record high in the U.S. stock market,” Win Udomrachtavanich, chairman of KTB Securities (Thailand) Co., said by phone from Bangkok. “Still, investors should be very selective as valuations of several stocks are quite stretched.”
- Financial stocks lead advance; Mitsubishi UFJ +4.3%, CCB +2.1%, Nomura Holdings +4.9%
- Nikkei 225 Index +1.8%, Topix +1.5% in Tokyo
- Hang Seng Index +1.4%, advances 4th day; Hang Seng China Enterprises Index +1.2%; Shanghai Composite +0.3%
- New Zealand’s S&P/NZX 50 Index +0.3%; South Korea’s Kospi index +0.8%
- FTSE Bursa Malaysia KLCI Index +0.3%; Straits Times Index +0.6%
- Australia, India, Taiwan, Vietnam closed for holidays