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'Trump trade' lifts dollar, Asia stocks await China news

storyp1> SINGAPORE, Oct 17 (Reuters) Asian shares steadied on Thursday ahead of a housing policy instruction in China that has actually raised expectations of support for the ailing property sector, while the dollar stood near 21/2 month highs on the possibility of a Donald Trump presidency.

International bonds rallied after a remarkably large drop in British inflation and as the European Central Bank is expected to announce its first back-to-back rate cut in 13 years.

Results at chipmaking giant TSMC2330. TW will be in focus after a soft outlook from devices provider ASMLASML.AS.

Japan's Nikkei . N225 was up 0.2% in early trade and Australian shares . AXJO increased 1% to hit a record high, led by the banking sector which had actually also carried out strongly on Wall Street.

The U.S. dollar stood near more than two-month highs as prediction markets showed Republican Trump leading the U.S. presidential race. U.S. futures ESc1 wobbled lower after the main U.S. indexes closed at or near record levels on Wednesday.

It's probably just in the last two or 3 days that the idea of a Trump success is getting the U.S. dollar quote, stated Damien McColough, head of rates technique at Westpac, with Trump's tariff, tax and immigration policies viewed as inflationary, unfavorable for bonds and positive for the dollar.

There's also the principle of a strong economy and less Fed rate cuts, so the 2 merge, he said. Trump and the Republicans are likewise viewed as likely to apply a softer touch to cryptocurrency guideline. Bitcoin BTC= has actually rallied in current sessions.

Bitcoin is up 15% in a week to $67,615. Gold XAU= hovered at $2,677 an ounce, simply short of record levels.

Chinese markets rose modestly at the open, with the Shanghai Composite . SSEC up 0.5% in early trade while Hong Kong's Hang Seng . HSI was 2% higher.


STERLING SLIPS

Worldwide economic information on Thursday and Friday is likewise most likely to be market-moving. In Asia, the Australian dollar AUD=D3 bounced from a one-month low after information showed net employment blowing past projections and pressing out rate cut bets. AUD/

The Aussie dollar was last up 0.5% at $0.6697 and three-year Aussie bond futures YTTc1 fell 8 ticks.

U.S. retail sales data is due later Thursday, and China on Friday is because of release third-quarter gross domestic product numbers. On Wednesday, British inflation slowed greatly to an annualised 1.7%, reinforcing bets that the Bank of England might cut rates two times before Christmas. 0 #BOEWATCH

Rates markets have actually priced a near 90% possibility of two 25 basis point rate cuts before year's end and the news sent out sterling GBP=D3 down 0.6% to its most affordable given that Aug. 20 and assisted push gilt and international bond yields lower.GB/ GVD/EUR US/ Standard 10-year U.S. yieldsUS10YT=RR were stable at

4.03%in Asia and two-year yields US2YT=RR held at 3.95%. Sterling traded at$1.2993, near its overnight low. GBP/ My guess is that London will most likely sell GBP strongly ... when they stroll in,stated Spectra Markets president Brent Donnelly in a note to

clients, as traders absorb the across-the-board downturn in rate pressures. Elsewhere in foreign exchange trade, the euro EUR= EBS was at$1.0862 and pinned near its most affordable since early August and the yen traded at 149.40 per dollar JPY=EBS.

In product trade, Brent unrefined futures LCOc1 steadied at$74.57 a barrel after 4 sessions of losses after industry information revealed an unforeseen drop in U.S. unrefined stockpiles recently. O/R World FX rates YTD http://tmsnrt.rs/2egbfVh Asian stock exchange https://tmsnrt.rs/2zpUAr4 (Reporting by Tom Westbrook in Singapore; Editing by Jamie Freed)To check out Reuters Markets and Finance news, click https://www.reuters.com/finance/markets. For the state of play of Asian stock exchange please click: 0 #. INDEXA

(source: Reuters)