Japan Joins Asia Stocks Rally Bandwagon as Political Risks Wane

Updated on
  • Topix rebounds from biggest drop since May as yen weakens
  • Hang Seng Index erases gains at end of day as developers fall

Amundi Says Markets Will Shrug Off N. Korea Tensions

Asian equities extended gains, tracking a U.S. equities rally overnight, as prospects of a war between the U.S. and North Korea receded.

The MSCI Asia Pacific Index advanced 0.2 percent to 158.72 as of 4:33 p.m. in Hong Kong, set for a second day of gains as consumer staples and finance stocks rose. The S&P 500 Index posted its first increase of least 1 percent since April as most investors put last week’s selloff behind them. Japan’s Topix index rose for the first time in five sessions as the yen weakened, while Hong Kong’s Hang Seng Index erased gains in the last 30 minutes of trading to closer lower. South Korea and India are closed for holidays.

“In general, the risk-off event last week was just an excuse in a very overbought market,” said Hao Hong, chief strategist at Bocom International Holdings Co. in Hong Kong. “Earnings season has been very good, and overnight we saw strong results in the U.S. and also in Hong Kong.” 

Summary

  • Hang Seng Index -0.3%, Hang Seng China Enterprises Index +0.3%
  • Shanghai Composite Index +0.4%, Taiwan’s Taiex Index +0.8%
    • Trump Calls for Review of China IP Policy as Trade Ties Sour
  • Japan’s Topix Index +1.1%, Nikkei 225 Index +1.1%
  • Australia’s S&P/ASX 200 Index +0.5%, New Zealand’s NZX 50 +0.7%
  • Singapore’s Straits Times Index -0.4%, FTSE Bursa Malaysia KLCI Index +0.1%, Philippine Stock Exchange PSEi Index +0.6%, Thailand’s SET Index +0.4%
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