Asia stocks gains with dollar, sterling hit by Brexit woes | Reuters
By Wayne Cole | SYDNEY SYDNEY Asian shares inched ahead on Wednesday while the dollar and commodities rallied as investors shook off disappointment about U.S. President Donald Trump's failed healthcare bill and focused on an improving outlook for global growth.The cheerful mood did not extend to the pound which was on the skids as the British government sent a letter to Brussels formally starting the country's exit from the European Union.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2 percent and back toward recent 21-month peaks
By Wayne Cole
SYDNEY Asian shares inched ahead on Wednesday while the dollar and commodities rallied as investors shook off disappointment about U.S. President Donald Trump's failed healthcare bill and focused on an improving outlook for global growth.The cheerful mood did not extend to the pound which was on the skids as the British government sent a letter to Brussels formally starting the country's exit from the European Union.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.2 percent and back toward recent 21-month peaks. Australia's main index climbed 0.6 percent to its highest since mid-2015.Japan's Nikkei .N225 added 0.1 percent, having climbed over 1 percent the previous day.The Dow snapped an eight-day losing streak, its longest run of losses since 2011, in part as a survey showed consumer confidence surged to a more than 16-year high."Economic fundamentals still remain exceedingly sound here in 2017 and you do not need Trump’s pro-growth fiscal agenda for this to be one of the best years for growth since the recovery started," argued Tom Porcelli, chief U.S. economist at RBC Capital Markets."We still think tax reform happens, but you are better off thinking about the timing as an end of year event at best."
The Dow .DJI ended Tuesday up 0.73 percent, while the S&P 500 .SPX gained 0.73 percent and the Nasdaq .IXIC 0.6 percent.The dollar bounced from 4-month lows as a top Federal Reserve official talked of more rate hikes to come while political uncertainties surrounding Britain's exit from the EU pressured European currencies.Fed Vice Chairman Stanley Fischer, one of the more influential policy makers with markets, said two more rate increases this year seemed "about right".
The pound shed a further 0.5 percent to $1.2389 GBP= after British Prime Minister Theresa May signed a letter notifying the EU of Britain's intention to leave the bloc.The letter is due to be delivered to Brussels later on Wednesday, triggering years of uncertain negotiations that will test the endurance of the European Union.That came a day after the Scottish Parliament voted in favor of a second independence referendum that would break up the UK.The euro pulled back to $1.0814 EUR=, while the dollar bounced to 111.21 yen JPY=. Against a basket of currencies, the dollar was a fraction firmer at 99.759 .DXY.
The biggest loser overnight was the South African rand which has lost almost five percent in two sessions on speculation well-respected Finance Minister Pravin Gordhan might lose his job. In commodity markets, base metal prices bounced on more upbeat economic news from China with copper CMCU3 gaining 2 percent overnight.Oil prices gained after a severe disruption to Libyan oil supplies and as officials suggested the Organization of the Petroleum Exporting Countries and other producers could extend output cuts to the end of the year. [O/R]U.S. crude CLc1 added 15 cents to $48.52 a barrel, while Brent LCOc1 rose 10 cents to $51.43.Spot gold XAU= was a shade softer at $1,249.60 an ounce. (Editing by Shri Navaratnam)
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By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.