Asian Equities Rise Sharply as Japan Holds Monetary Stimulus Scheme

By Investors Hub

Asian stocks rose broadly on Tuesday after the three-day U.S. government shutdown ended and the Bank of Japan maintained its massive monetary stimulus program.

The U.S. House and the Senate voted Monday to end the government shutdown and subsequently passed a bill to fund the government for about three weeks after Senate majority leader Mitch McConnell promised to address the fate of young immigrant ‘Dreamers.’

Regional markets shrugged off news that the U.S. will impose steep tariffs on imported washing machines and solar panels.

China’s Shanghai Composite index jumped 45.14 points or 1.29 percent to
3,546.50 as investors turned more optimistic about growth in 2018. Hong Kong’s Hang Seng index was up 1.48 percent at 32,873 in late trade.

Japanese shares rallied as the Bank of Japan kept the monetary policy unchanged and offered a more upbeat view on inflation expectations, helping ease jitters that it might shift toward a tighter policy.

The Nikkei average finished up 307.82 points or 1.29 percent at 24,124.15, its highest level in more than 26 years. The broader Topix closed 1 percent higher at 1,911.07, led by property developers and precision machinery companies.

Realty firm Mitsui Fudosan advanced 2.7 percent while Mitsubishi Estate climbed 3.5 percent. DIC Corp rallied 2.9 percent on a Nikkei report that the chemical company’s group operating profit rose 5 percent in 2017.

Australian shares rose sharply to snap a five-day losing streak after U.S. main indexes finished at fresh closing highs overnight.

The benchmark S&P/ASX 200 index climbed 45.10 points or 0.75 percent to finish at 6,037 while the broader All Ordinaries index ended up 44.50 points or 0.73 percent at 6,150.70.

Woodside Petroleum, Santos, Origin Energy and Beach Energy jumped 1-4 percent as oil prices edged higher after comments from Saudi Arabia that supply curbs would continue beyond 2018.

The big four banks rose between half a percent and 1.5 percent while miner Whitehaven Coal advanced 4.8 percent.

Medical equipment maker ResMed soared 8.4 percent on reporting a surge in quarterly revenue. JB Hi-Fi gained 2.4 percent after the electronics retailer was ranked by Deloitte among the top 250 retailers in the world on revenue for the first time.