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Home>ASIA MARKETS: Hang Seng, Nikkei Reach Multi-year Highs As Asian Stocks Rise

ASIA MARKETS: Hang Seng, Nikkei Reach Multi-year Highs As Asian Stocks Rise

ASIA MARKETS: Hang Seng, Nikkei Reach Multi-year Highs As Asian Stocks Rise

10/06/2017

By Ese Erheriene

Hong Kong index is up 29% this year

Stock markets in Asia posted broad gains Friday morning as Hong Kong's benchmark index briefly reached its best level in a decade and Japan's Nikkei moved closer to levels last seen in 1996.

The latest leg higher for stock markets, including new records in the U.S., has been helped by fresh comments from central bankers interpreted in support of a December interest-rate increase. Fed-fund futures now show a 87% probability of an increase then, versus 78% on Tuesday, according to CME Group data.

The comments helped push the dollar higher on Thursday, giving a fresh lift to equities globally.

"It is difficult to say more about the raging optimism in U.S. equity markets," said Jingyi Pan, a market strategist at IG Group. That includes six consecutive record closing highs for the S&P 500, the longest such streak in 20 years, and Wall Street's fear gauge -- the CBOE Volatility Index, or VIX -- finishing at a record low Thursday.

For Asia, "mild gains remains in sight given the abundance of positive leads," said Pan.

Leading the way in Asia Pacific on Friday was Australia, which has been lagging both recent gains and the advances seen elsewhere for much of this year. The S&P/ASX 200 rose 0.7%, helped by overnight gains in commodity prices, a key segment for the country's economy. The index through Thursday had fallen for three straight sessions, putting it down 0.2% for the year.

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