Asian Stocks Close Higher After Congress Pass $4.1tr Budget Resolution

October 6, 2017
Asian Stocks Close Higher After Congress Pass $4.1tr Budget Resolution

By Investors Hub

Asian stocks closed mostly higher on Friday, tracking overnight gains on Wall Street after Congress passed a $4.1 trillion budget resolution and data on jobless claims, factory orders and trade pointed to underlying strength in the economy. However, overall gains remained muted ahead of the U.S. September jobs report.

Japanese shares hit a two-year high, with a weakening yen on hopes for U.S. tax reform as well as record highs on Wall Street giving local markets a lift.

The Nikkei 225 Index finished 62.15 points or 0.3 percent higher at 20,690.71, while the broader Topix Index closed 0.3 percent higher at 1,687.16.

Among the top gainers, Kobe Steel, Mitsubishi Motors, Dai-ichi Life Insurance, Mitsubishi UFJ Financial, Fast Retailing and Sumitomo Metal Mining jumped 2-4 percent.

MS&AD Insurance advanced 1.6 percent after it agreed to invest 800 million pounds, or $1.5 billion, to acquire a stake of up to 15 percent in Swiss Re’s U.K.-based unit ReAssure Jersey One Ltd.

Australian shares rallied, led by financial and material stocks after the major U.S. indexes rose solidly overnight to reach fresh record closing highs.

The benchmark S&P/ASX 200 Index jumped 58.90 points or 1 percent to 5,710.70, while the broader All Ordinaries Index surged up 57.10 points or 1 percent to 5,777.40.

Mining heavyweights BHP Billiton and Rio Tinto rallied around 2 percent each and healthcare firm CSL rose 1.2 percent as the Aussie dollar continued to fall following Thursday’s dismal retail sales data.

Woodside Petroleum, Oil Search and Santos gained between 1.6 percent and 2.3 percent after crude oil prices rebounded to above $50 a barrel overnight. The big four banks all ended up more than 1 percent.

Investors shrugged off a survey from the Australian Industry Group showing that Australia’s construction sector expanded at a slower pace in September.

Hong Kong’s Hang Seng Index rose 78.86 points or 0.3 percent to 28,458.04 as trading resumed after Thursday’s holiday. The index closed at its highest level in nearly a decade. Chinese and South Korean markets were closed for trading.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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