TOKYO Asian shares were close to 18-month highs on Friday, tracking a rally on Wall Street after U.S. President Donald Trump promised to unveil a major tax announcement to lower the burden on businesses.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.1 percent, testing its loftiest level since July 2015 touched a day earlier, and was on track to gain 1.1 for the week.Japan's Nikkei stock index .N225 surged 1.8 percent as it got a tailwind from a weaker yen, poised to added 1.8 percent for the week.Wall Street's three main indexes notched record highs on Thursday after President Donald Trump said he would make a major tax announcement in a few weeks, though he offered no details. [.N]"The market loves the idea of tax reform," Chris Weston, chief market strategist at IG in Melbourne, said in a note. "It has corporate tax cuts in its sights and if Trump can push that along, with a more simplified personal tax regime the U.S. and global equities will find buyers." U.S. economic data also underpinned the dollar. Initial jobless claims unexpectedly dropped last week to a nearly 43-year low, while inventories at wholesalers surged in December for a second straight month.
St. Louis Federal Reserve Bank President James Bullard also gave markets something to cheer about, saying U.S. interest rates can likely remain low through at least 2017, with no clear sense yet of whether the Trump administration's policies will spark higher inflation or growth.Bullard said he feels that the Fed will only need to raise interest rates once this year, and indicated a move probably will not happen when the central banks meets in March.The dollar index, which tracks the greenback against a basket of six major currencies, edged up to 100.67 .DXY, on track to gain 0.8 percent for the week.
The euro, recently pressured by political concerns ahead of the France's presidential election, was steady on the day at $1.0656 This story has not been edited by Firstpost staff and is generated by auto-feed.
This story has not been edited by Firstpost staff and is generated by auto-feed.
Published Date: Feb 10, 2017 07:15 am | Updated Date: Feb 10, 2017 07:15 am