TOKYO: Asian markets ended mixed after US shares hit fresh records for a 4th straight session, while a weaker yen, and rumours of a delayed sales tax, assisted Japan’s Nikkei extend its recent rally to record a seven-year high.
Tokyo gained 2.05 per cent, or 343.58 points, on Tuesday to 17,124.11 – its best finish since October 2007 – while Seoul rose 0.24 per cent, or 4.77 points, to 1,936.00 and Hong Kong ended 0.27 per cent, or 63.58 points, higher at 23,808.28. However, Shanghai ended 0.16 per cent, or 4.00 points, off at 2,469.67.
Wall Street continued its impressive run on Monday, adding to Friday’s gains after data showed jobs creation was healthy in October and the unemployment rate hit a six-year low. The figures were the latest indicating the world’s top economy is on the path to recovery, with investors now keen to find out when the Federal Reserve plans to increase interest rates. The Dow rose 0.23 per cent and the S&P 500 added 0.31 per cent, both hitting records for a fourth successive session, while the Nasdaq was up 0.41 per cent.
In Tokyo, the Nikkei resumed its uptrend as the yen dipped against the US dollar, with analysts forecasting the index will march on through the rest of the year after the Bank of Japan’s stimulus injection last month. The US dollar was at Y115.60, compared with Y114.83 in New York and sharply up from Y114.16 in Tokyo earlier Monday. The euro bought $US1.2407 compared with $US1.2420, while it was also at Y143.58 against Y142.62.
Also providing support to Tokyo stocks is Japan’s $US1.26-trillion public pension fund – the world’s biggest – which said last month it would double the amount of equities in its investment portfolio, as it seeks higher returns to cope with a rapidly ageing population. Daiwa Securities senior strategist Tsuyoshi Nomaguchi told Dow Jones Newswires he expects the Nikkei will climb to the 18,000 mark from its present level around 16,900. On oil markets, US benchmark West Texas Intermediate (WTI) for December delivery fell 27 cents to $US77.13 while Brent crude for December eased 34 cents to $US82.00 in afternoon trade. WTI tumbled $US1.25 and Brent lost $US1.05 on Monday after Kuwait said the 12-nation Organisation of the Petroleum Exporting Countries is unlikely to cut output when it meets in Vienna on November 27. Gold was at $US1,150.00 an ounce, compared with $US1,171.30 late Monday.
