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Nov. 7, 2017, 8:45 a.m. EST

Asia-Pacific markets charge to multiyear highs in low-rate, low-inflation climate

Nikkei hits levels last seen in 1992; Hang Seng hits decade high

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By Kenan Machado


Getty Images/iStockphoto
Hong Kong’s Hang Seng hit a fresh 10-year high Tuesday.

Asia-Pacific stocks posted gains Tuesday after several days of little movement globally, allowing many indexes in the region to hit fresh multiyear highs.

Fresh foreign inflows helped Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -3.67%   top its 1996 high and reach levels last seen in early 1992. It closed at 22,937.60, up over 380 points or 1.7%.

Meanwhile, Hong Kong’s Hang Seng hit a fresh 10-year high and Australia’s benchmark /zigman2/quotes/210598100/delayed AU:XJO -3.25%   exceeded its 2015 peak to hit its highest point since early 2008. It closed up over 1% at 6,014.30.

The continuing low-interest-rate environment and a solid earnings season has presented a Goldilocks climate — an environment where economic conditions are seen as neither too week nor too strong to warrant policy efforts to prevent activity from potentially overheating — said Andrew Bresler, deputy Asia Pacific head of sales trading at Saxo Capital Markets.

“There are few risks on the horizon” to cut into current valuations, he added. Some have been concerned that equities globally have become overpriced.

Australian stocks notably lagged behind the region throughout 2017. But they came alive last month as prices for stocks and commodities rose globally, with the S&P/ASX 200 rising 4% in October, its best month of the year.

It climbed another 1.5% this first week of November, including 0.7% Tuesday, putting the benchmark briefly above 6,000.

Major mining companies BHP Billiton /zigman2/quotes/201448516/delayed AU:BHP -4.52%   and Rio Tinto /zigman2/quotes/200083756/delayed AU:RIO -3.47%   led the day’s gains, rising more than 2% to hit their best levels in two years and six years respectively.

The sector was helped by a further rebound in Chinese iron-ore prices, which recently hit four-month lows. Futures prices on the Dalian Commodity Exchange in China shot up about 5% Monday and were recently 3.5% higher Tuesday.

“Rising steel prices now have investors alert to the possibility that iron ore” might be putting in a base, “justifying a rally in the major mining stocks,” said Ric Spooner, chief market analyst at CMC Markets.

Higher oil prices in overnight U.S. trading gave energy stocks across the region a lift. After settling up 3% Monday, oil futures were recently down less than 0.2% in Asian trading.

Japan Petroleum /zigman2/quotes/201212147/delayed JP:1662 -5.83%   and Inpex /zigman2/quotes/206689846/delayed JP:1605 -2.67%   each climbed some 4% Tuesday.

Sinopec /zigman2/quotes/202085942/delayed HK:386 -1.95%   rose similarly, which, along with another 3% jump in internet heavyweight Tencent /zigman2/quotes/204605823/delayed HK:700 -3.31%  , had Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -2.42%   rising 1.4%, extending Monday’s rebound in which a near-2% decline was erased by the close.

Stocks in Singapore, which are also influenced by oil prices, logged strong Tuesday morning gains. The Straits Times Index /zigman2/quotes/210597985/delayed SG:STI -3.23%   was up 0.9%, hitting a fresh two-year high.

/zigman2/quotes/210597971/delayed
JP : Nikkei
21,142.96
-805.27 -3.67%
Volume: 0.00
Feb. 28, 2020 3:15p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,441.20
-216.70 -3.25%
Volume: 1.52M
Feb. 28, 2020 5:29p
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/zigman2/quotes/201448516/delayed
AU : Australia: Sydney
$ 33.60
-1.59 -4.52%
Volume: 18.36M
Feb. 28, 2020 4:10p
P/E Ratio
12.57
Dividend Yield
6.60%
Market Cap
$169.91 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200083756/delayed
AU : Australia: Sydney
$ 87.27
-3.14 -3.47%
Volume: 5.14M
Feb. 28, 2020 4:10p
P/E Ratio
12.44
Dividend Yield
7.53%
Market Cap
$141.76 billion
Rev. per Employee
$1.14M
loading...
/zigman2/quotes/201212147/delayed
JP : Japan: Tokyo
¥ 2,311.00
-143.00 -5.83%
Volume: 367,700
Feb. 28, 2020 3:00p
P/E Ratio
6.63
Dividend Yield
2.16%
Market Cap
¥132.08 billion
Rev. per Employee
¥156.48M
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/zigman2/quotes/206689846/delayed
JP : Japan: Tokyo
¥ 932.90
-25.60 -2.67%
Volume: 14.04M
Feb. 28, 2020 3:00p
P/E Ratio
8.67
Dividend Yield
3.86%
Market Cap
¥1362.22 billion
Rev. per Employee
¥291.81M
loading...
/zigman2/quotes/202085942/delayed
HK : Hong Kong
HK$ 4.02
-0.08 -1.95%
Volume: 206.76M
Feb. 28, 2020 4:08p
P/E Ratio
9.31
Dividend Yield
10.54%
Market Cap
HK$486.71 billion
Rev. per Employee
HK$7.40M
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 386.00
-13.20 -3.31%
Volume: 31.92M
Feb. 28, 2020 4:08p
P/E Ratio
37.62
Dividend Yield
0.26%
Market Cap
HK$3657.98 billion
Rev. per Employee
HK$8.27M
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
26,129.93
-648.69 -2.42%
Volume: 3.19M
Feb. 28, 2020 4:09p
loading...
/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
3,011.08
-100.62 -3.23%
Volume: 0.00
Feb. 28, 2020 5:20p
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