ASIA-PAC MID-SESSION UPDATE: Asia trade gets lift from record setting day on Wall St as tech and energy lead

Asia equity markets are higher across the board as Asia-Pac bourses receive a lift from their US counterparts, where tech outperformed and all major indices posted fresh record high levels. ASX 200 (+0.5%) is led by energy names as crude prices extend on post-API gains after the latest inventory report showed the largest drawdown in 3 months, while Nikkei 225 (+1.0%) shrugged off a firmer currency and jumped aboard the tech-rally ahead of tomorrow’s market closure. Elsewhere, Hang Seng (+1.1%) and Shanghai Comp. (+0.9%) extend on recent advances after the PBoC upped its liquidity operations again, with blue-chip energy names also underpinned.

Commodity linked currencies retain the prior session’s gains amid strength in crude and an overall humdrum tone across FX trade. Nonetheless, NZD/USD saw initial strength on a break through Tuesday’s highs and after AUD/NZD retreated from resistance at 1.1100, while AUD only found brief support from a surprise expansion in Construction data. Elsewhere, the rest of major currencies were uneventful with outgoing Fed Chair Yellen failing to spur a reaction despite an uncertain tone regarding low inflation, which has left participants looking towards the upcoming UK Budget and FOMC minutes for a better catalyst.

Finally, 10yr JGBs are higher despite the positive risk tone across the region, with the BoJ present in the market for nearly JPY 1tln of JGBs ranging from 1yr-10yr maturities.

22 Nov 2017 - 02:53- Important- Source: RANsquawk

Subscribe Now to RANsquawk

Click here for a 1 week free trial

RANsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include: