By Wayne Cole
SYDNEY (Reuters) - Asian shares crept higher on Thursday as upbeat bank earnings bolstered Wall Street, while an anti-climactic end to the latest chapter in the Brexit saga gave sterling a moment's peace.
MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> edged up 0.1 percent, with Australia <.AXJO> was ahead by 0.2 percent.
On Wall Street, strong earnings from Bank of America
The Dow <.DJI> ended Wednesday with gains of 0.59 percent, while the S&P 500 <.SPX> added 0.22 percent and the Nasdaq <.IXIC> 0.15 percent.
Investors in Asia might be less encouraged by a Wall Street Journal report that U.S. federal prosecutors were investigating Huawei Technologies, the world's largest telecommunications equipment maker, for allegedly stealing trade secrets from U.S. businesses and could soon issue an indictment.
Such a move could inflame tensions between Beijing and Washington and make a trade deal yet harder.
China's central bank on Wednesday moved to avert a cash crunch in the economy by injecting a record $83 billion into the country's financial system.
Also looming in the background were concerns the U.S. government shutdown was starting to take a toll on its economy.
White House economic adviser Kevin Hassett said the shutdown shaved 0.13 percent off quarterly economic growth for each week it goes on.
As expected, British Prime Minister Theresa May narrowly won her confidence vote and invited other party leaders for talks to try to break the impasse on a Brexit divorce deal.
An outline for Plan 'B' is due by Monday and the market assumes there will have to be an extension of the Article 50 exit date past March 29.
"Nothing has happened in the last 24 hours to dissuade us from the view that we are headed in the direction of an Article 50 delay, a softer Brexit or no Brexit," said Ray Attrill, head of FX strategy at NAB.
"But it remains too soon to be buying sterling with your ears pinned back," he added, noting many uncertainties remained.
All of which left the pound firm at $1.2881
The lessening of Brexit risk pressured the safe-haven yen and helped the U.S. dollar up to 109.10
In commodity markets, palladium
(Editing by Jacqueline Wong)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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Updated Date: Jan 17, 2019 06:05:07 IST