World Business
Asia shares hit high on GDP growth
By Mirriam mashipei
On 1st November 2017 Asia shares scaled a 10-year
high boosted by solid corporate earnings and economic
growth. MSCI’s broadest index outside increased by 0.6
per cent , South Korea led by 1.1 gains while Japan Nikkei
1.4 percent. “Hopes of U.S. tax cuts, a slight easing in
U.S. long-term bond yields since late last month and a
rise in oil prices are all positive for Asian shares,” said
Yukino Yamada, senior strategist at Daiwa Securities.
“Last month, there were major inflows to high-tech
shares in Korea and Taiwan. And GDP of these countries
were also strong, showing the strength is spreading
to the entire economy, not just within the high-tech
sector,” she added.
On 9th November US president Donald Trump
announced Jerome Powell, governor of the U.S. Federal
Reserve as his nominee for Chairman of the Federal
Reserve. Market investors expect that the new chair
who is considered more dovish on interest rates and
thus relatively stock market friendly. Investors are also
focused on the progress of US tax cut plan. US GDP for
July-September showed a growth of 3% slightly above
the above the average of 2% since the financial crisis.”
Hopes of US tax-cut, a slight easing in US long-term
bond since late last month and a rise in oil prices are all
positive for Asia shares.
Last month there were major inflows to the high
–tech share in Korea and Taiwan. And GDP of these
countries were strong showing the strength is spreading
to the entire Economy not just high tech sectors,” said
Yukino Yamada, senior strategist at Daiwa securities.
Against a basket of six major currencies the dollar’s
index stood at 94.71 from last months three-month
peak of 95.15. TB
NOVEMBER 2017 • THINK BUSINESS | 9