Business

Apple hits all-time highs, Asia hopes to benefit

shares

Syndicated News
Written by Syndicated News

SYDNEY, Aug 2 2017 : Asian stocks paused near decade-highs today as investors waited to see if strong earnings results from tech bellwether Apple (AAPL.O) would ripple out to component makers in the region.

Shares in the world’s most valuable company surged 6 percent after hours to a record of more than $159, taking its market capitalization above $829 billion. That should also help carry the Dow through the 22,000 mark when trading resumes.

E-Mini futures for the S&P 500 inched up 0.1 percent in early trade today.

The tech giant reported better-than-expected iPhone sales, revenue and earnings per share and signalled its upcoming 10th-anniversary phone is on schedule.

MSCI’s broadest index of Asia-Pacific shares outside Japan was steady in early trade, having hit its highest since late 2007.

Japan’s Nikkei .N225 rose 0.5 percent. Apple suppliers soared, with Murata Manufacturing (6981.T) up 3.2 percent and Taiyo Yuden (6976.T) gaining 3.3 percent.

South Korean stocks .KS11 edged up 0.2 percent, but Australia’s benchmark fell 0.4 percent.

There was a note of caution over reports U.S. President Donald Trump was close to a decision on how to respond to what he considers China’s unfair trade practices.

Tepid U.S. inflation along with political turmoil in Washington has lessened the risk of another Federal Reserve rate hike this year, lowering bond yields across the globe.

Improving data in other major economies has also served to push the greenback down nearly 11 percent from January peaks, benefiting commodities and emerging markets.

A swathe of manufacturing surveys (PMIs) out yesterday underlined how the improvement in activity had broadened out from the United States to Asia and Europe.

Alan Ruskin, head of G10 forex at Deutsche, noted the top five PMIs were all Northern European economies and every index in Europe was in expansionary territory above 50.

“That will do nothing to hurt ebullient global risk appetite,” said Ruskin. “This phase of the risk rally is based on growth data, but even more on subdued inflation measures.”

“The latter plays to a gradual Central Bank exit from extreme policy accommodation that should prolong the global growth cycle.” 

Dollar Oversold

MSCI’s gauge of stocks across the globe has scored its longest monthly winning streak in over a decade.

On Wall Street, the Dow .DJI ended yesterday with gains of 0.33 percent, while the S&P 500 .SPX added 0.24 percent and the Nasdaq .IXIC rose 0.23 percent.

In currency markets, the dollar edged away from deep lows though thanks mainly to positioning – bears are already so short of the currency that they are wary of selling even more.

The dollar was last up slightly against the yen at 110.43 JPY=, having briefly fallen below 110 yen for the first time in more than six weeks.

Oil prices were under pressure again as major world oil producers kept pumping out supply, causing investors to worry that several weeks of steady gains had pushed the rally too far.

Brent crude eased 22 cents to $51.56 a barrel, while U.S. crude lost 26 cents to $48.90 a barrel. – Reuters

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.