Asian Stocks Climb to 18-Month High on Trump’s Tax Revamp Plan

  • Rally extends to most markets after U.S shares hit record
  • Recent decline in Treasury yields supports Asia equities: PGI

Asian shares rose to the highest level since July 2015, following U.S. stocks’ climb to record highs after President Donald Trump said he plans to overhaul business taxes.

Stocks advanced in nearly all Asia-Pacific markets following Trump’s pledge that a “phenomenal” plan to overhaul business taxes will be released within weeks. The MSCI Asia Pacific Index rose 0.9 percent as of 4:15 p.m. in a rally led by shares of consumer discretionary companies. Japanese auto-related stocks were among the biggest boosts to the gauge, as a weaker yen improved the outlook for exporters.

“The market’s getting some breathing space after declines in the 10-year Treasury yield and an apparent softening of Donald Trump’s rhetoric around tariffs on Chinese imports,” said Binay Chandgothia, a Hong Kong-based fund manager at Principal Global Investors. “The market has adjusted to the possibility that interest rates may not shoot up, which in an environment of higher global growth, should support Asian equities.”

  • Topix closes 2.2% higher, Nikkei 225 +2.5%, both gaining most in 5 weeks
  • Hang Seng Chinese Enterprises Index advances 0.5% in its 5th day of gains, HSI +0.2%, Shanghai Composite +0.4%
  • S&P/ASX 200 +1%; South Korea’s Kospi +0.5%; Taiex +0.8%
  • Straits Times Index +0.7%; FTSE Bursa Malaysia KLCI +0.7%; Jakarta Composite Index +0.4%; Philippine Stock Exchange Index -0.2%
  • BGF Retail +7.5%, Yamaha Motor +7.7% after their quarterly results beat estimates
  • Taiwan Cement +6.2% as product prices expected to rise on Chinese demand
  • Shiseido -7.1% as Credit Suisse says co.’s 2017 guidance ‘unexpectedly weak’
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