ASIA-PAC MARKET WRAP: US tax reform hopes buoy Asia stocks; India election count feints markets

Asia equity markets began the week mostly positive following Friday’s gains on Wall St. where tax reform optimism buoyed all major indices to record levels after reports Republican Senators Rubio and Corker were to support the tax bill. ASX 200 (+0.7%) was higher as miners gained after an early 6% surge in Dalian iron ore prices, while Nikkei 225 (+1.6%) outperformed on JPY weakness and after encouraging Japanese Trade Data in which Exports rose a 12th consecutive month. Elsewhere, Hang Seng (+0.7%) was positive and Shanghai Comp. (-0.1%) traded indecisive after a significant CNY 300bln injection by the PBoC, and as some property names lagged after the latest China House Price data continued to show the effectiveness of government measures to cool the property sector. India markets were volatile on election risk during vote counting day with the NIFTY (+0.7%) down 2% at the start of trade as early results suggested a closer race in Gujarat between the ruling BJP and the opposition Congress Party than what was seen in Friday’s exit polls. However, stocks later pared losses and then some, after the BJP pulled ahead and trends pointed to a comfortable majority win. Finally, 10yr JGBs were uneventful with prices flat as pressure from the heightened risk appetite in Japan was counterbalanced by a respectable Rinban announcement by the BoJ for nearly JPY 1tln of JGBs in 1yr-10yr maturities.

18 Dec 2017 - 05:52- MetalsResearch Sheet- Source: RANsquawk

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