Investor Optimism on U.S. Tax Reform Pushes Asian Stocks Higher

  • Hong Kong morning trading session canceled on typhoon warning
  • Any progress on U.S. tax agenda is a relief: CMC Markets

Asian Stocks Rise as Tensions Ease

Reports that the Trump administration and lawmakers may be making progress toward pro-business reforms pushed Asian equities higher Wednesday, extending gains to a third day.

The MSCI Asia Pacific Index advanced 0.1 percent to 159.81 as of 5:12 p.m. in Hong Kong, led by technology and consumer discretionary stocks. Japan’s Topix index closed higher, paring some of its gains after U.S. President Donald Trump reignited trade concerns in comments about the future of Nafta. Hong Kong canceled the day’s trading session as Severe Typhoon Hato pummeled the financial center.

“Any progress on the tax agenda is a relief, even though a deal is far from completion,” Margaret Yang, a market analyst at CMC Markets in Singapore wrote in a note. “The sustainability of the round of rebounds will largely depend on Trump’s reform agenda as well as central bank governors’ speeches in Jackson Hole,” she said, adding that key speakers U.S. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi are expected to spike volatility in the FX market.

The S&P 500 Index advanced by 1 percent on Tuesday as reports stated a growing number of key congressional Republicans are considering a way to allow about $450 billion of tax cuts without offsets, according to people familiar with the discussions.

Summary

  • Shanghai Composite Index -0.1%, Taiwan’s Taiex Index +0.1%
  • Kospi +0.1%, Kospi 200 indexes +0.1%
  • Japan’s Topix +0.3%, Nikkei 225 +0.3%
  • Australia’s S&P/ASX 200 Index -0.2%, New Zealand’s NZX 50 +0.2%
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  • Singapore’s Straits Times Index -0.1%, FTSE Bursa Malaysia KLCI Index -0.1%, Jakarta Composite Index +0.6%, Vietnam’s VN Index +0.6%, Thailand’s SET Index little changed
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  • India’s S&P BSE Sensex Index +0.4%, NSE Nifty 50 Index +0.3%
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