Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan at highest since June 2018, up 16% this year
* Fourth-qtr earnings will come to focus in January
* MSCI world index, Dow, S&P500 hit record closing highs
Thursday
* Brent crude at 2-1/2 month peak, gold at 2-month highs
By Swati Pandey
SYDNEY, Dec 27 (Reuters) - Asian shares jumped to an
18-month high on Friday while gold and oil prices stayed buoyant
in a holiday-shortened week, as investor optimism was boosted by
hopes a U.S.-China trade deal would soon be signed.
Traders returned from their Christmas and Boxing Day break
to digest comments from Beijing that it was in close contact
with Washington about an initial trade agreement, shortly after
U.S. President Donald Trump talked up a signing ceremony for the
recently struck Phase 1 trade deal. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS jumped 0.55% to 555.25, a level not seen since
mid-2018. It is up about 16% so far this year.
Japan's Nikkei .N225 was flat, but on track for a near 20%
rise this year, biggest annual increase since 2013.
The country's industrial output slipped for a second
straight month in November in another sign the economy is
cooling. Japan has approved a record budget for the coming
fiscal year, in a bid to shore up growth. Australia's benchmark index .AXJO rose 0.2% while Chinese
shares were upbeat after Beijing laid out additional plans to
bolster its economy, including infrastructure investments. The
blue-chip CSI300 .CSI300 added 0.56%.
The rally in global share indices is in sharp contrast to a
plunge late last year when fears about the impact of the
Sino-U.S. trade war had sapped investor confidence.
The worries scuttled capital expenditure plans over much of
2019, but strong employment and signs of an improving global
economy suggest that will change next year.
The U.S. Federal Reserve's policy easing, economic data that
has come in above low expectations, and corporate profits have
helped lift stocks this year along with trade-related optimism.
Market participants are now waiting for fourth-quarter
earnings in January for indication on whether sentiment among
corporates has actually improved.
Overnight, MSCI's all-country world index .MIWD00000PUS
and Wall Street's Dow Industrials, the benchmark S&P 500 and the
technology-rich Nasdaq all closed at record highs. .N
MSCI's gauge of stocks across the globe gained 0.38% to a
record, on track for its best year since 2009. The index has
gained 24% this year.
Wall Street was boosted overnight by U.S.-China trade
optimism and gains in Amazon.com AMZN.O .
Amazon shares jumped 4.4% after Mastercard said U.S.
shoppers spent more online during the holiday season than in
2018, with e-commerce sales hitting a record. GOLD RETAIN GAINS
Both oil and gold held on to their recent gains.
Brent crude LCOc1 , the global benchmark, extended gains
into a fourth session, hitting $68.09 per barrel, the highest
since mid-September. U.S. West Texas Intermediate CLc1 crude
gained 14 cents to $61.82 a barrel. O/R
Brent has rallied about 25% in 2019, supported by supply
cuts by OPEC and allies including Russia.
Gold prices XAU= were a bit shy of a two-month high at
$1,509.29 an ounce. They have been on the rise recently as a
hedge against dollar weakness and increased equity market
volatility in 2020. GOL/
The rally in oil and gold boosted commodity-linked
currencies in the past 24 hours with the New Zealand dollar
NZD=D3 up 0.6% and the Australian dollar AUD=D3 up 0.3%.
The U.S. dollar was a tad weaker against the Japanese yen at
109.47.
The dollar index .DXY was barely changed against a basket
of six major currencies, with the euro EUR= up a notch and the
British pound GBP= mostly flat.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Himani Sarkar)