Asian Stocks Rise Amid U.S. Financial Deregulation Moveby
Chinese, Japanese bank shares follow U.S. peers higher
Earnings also help drive gains; MUFG, Yahoo Japan jump
U.S. President Donald Trump’s move toward looser regulation of the financial industry pushed Asian shares higher.
The MSCI Asia Pacific Index advanced 0.5 percent as of 5 p.m. in Hong Kong, led by a gauge of financial shares. Mitsubishi UFJ Financial Group Inc. climbed 3.4 percent after reporting a surprise 17 percent gain in third-quarter profit. Mitsubishi UFJ helped lead the Topix index to a 0.4 percent advance. Banks pushed U.S. stocks higher Friday as Trump prepared to sign executive orders on financial deregulation and a review of the Dodd-Frank act.
“A deregulated Wall Street will create a new wave of bullish sentiment in the short term,” Margaret Yang, an analyst at CMC Markets Singapore, said in a note today.
The Hang Seng China Enterprises Index jumped the most in a month to post the biggest regional gain. Insurers accounted for five of the seven biggest gainers on the gauge, with China Life Insurance Co. having its largest one-day advance since August 2015. Analysts had a range of reasons for the sudden rally, from speculation Chinese pension funds are about to enter the stock market to bets higher borrowing costs would boost investment yields.
- Hang Seng China Enterprises Index +1.6%; Shanghai Composite +0.5%
- Nikkei +0.3%
- Yahoo Japan +14.8% after 3Q earnings beat forecasts
- Australia’s S&P/ASX 200 -0.1%; South Korea’s Kospi +0.2%
- Philippine Stock Exchange Index +0.9%; FTSE Bursa Malaysia KLCI +0.4%; Straits Times Index +0.5%, Jakarta Composite Index +0.7%
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