Asian shares headed higher on Wednesday, after U.S. indexes closed higher on Tuesday, fueled by strong corporate profits and expectations of an oil production cut that is expected to buoy oil prices. The tech sector was also a popular choice for investors as traders are looking to squeeze out some profits before the year’s end. Google, Alphabet and Apple share prices all rallied on Tuesday.
The strong global economy has increased interest in global offerings, and Asian markets also felt the love on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan enjoying the biggest gain in eight months on Wednesday, largely due to gains in the technology and energy sectors. The index is up approximately 33 percent this year, and is on track for its best yearly performance since 2009.
Japan’s Nikkei 225 index gained 0.48 percent on Wednesday as of 2:28 p.m. HK/SIN, heading towards 26-year highs, while Hong Kong’s Hang Seng index gained 0.35 percent. Australia’s ASX 200 was up 0.38 percent and South Korea’s Kospi was up 0.32 percent. Only the Shanghai Composite was in the red, down 0.13 percent in the mid-afternoon.
Currency Market Movements
The dollar remained relatively stable on Wednesday after U.S. Treasury yields failed to rise despite the increased risk sentiment. The U.S. yield curve hit its lowest point in a decade on Tuesday on expectations that the Federal Reserve will again raise interest rates. Low inflation and global demand for yield has also supported a longer-dated debt, while the Treasury is generally seen increasing short-dated debts.
The dollar was down 0.28 percent against the yen, to trade at 112.11. It was also down against the euro, trading at $1.1751.