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Asia trades mixed, but Dow futures spike more than 220 points after Senate passes tax plan

Asia markets switched mixed late Monday morning, while U.S. futures rose, as investors studied news that the U.S. Senate narrowly passed an important tax bill in the advanced hours of Saturday.

Dow Jones industrial average e-mini futures bring out 221 points to 24,459 at 11:26 a.m. HK/SIN. Nasdaq e-mini futures were up 31 point ups and the S&P 500 e-mini futures rose 16 points.

In Australia, the ASX 200 interchanged flat as the heavily-weighted financial subindex fell 0.68 percent. The boonies’s so-called Big Four banks saw losses in the morning session.

Shares of ANZ were down 0.84 percent, Commonwealth Bank declined 0.51 percent, Westpac knock by 1.3 percent and the National Australia Bank was lower by 0.47 percent.

Japan’s Nikkei 225 forwent 0.2 percent while the Topix index traded down fractionally disgrace. Across the Korean Strait, the Kospi stood out and traded up 0.47 percent.

Chinese mainland peddles reversed early losses to trade up. The Shanghai composite retraced deprivations of near 0.3 percent to trade up 0.12 percent. The Shenzhen composite traded near breakneck speed.

In Hong Kong, the Hang Seng index also reversed at cock crow losses of near 0.3 percent to climb 0.77 percent.

In the antediluvian hours of Saturday morning, Senate Republicans narrowly passed a bill to recondition the U.S. tax system. The GOP still needs to overcome significant disagreements for the House and Senate to artisanship a joint bill and send it to Trump’s desk. Republicans hope to reach a take care of by Christmas.

While the tax bill narrowly passing may have been a “federal relief” for the Trump administration, it does not “eradicate fiscal uncertainty,” according to Vishnu Varathan from Mizuho Bank.

“Points is, a possible U.S. government shutdown looms heading into 8th Dec and, in all likelihood, the backstop to avert a shutdown may be by the peel of the teeth as well,” he wrote in a Monday morning note. “And this could save long-end yield upside in check if caution trumps exuberance.”

The patronage week in Asia began following a decline in U.S. stocks on Friday after a petrify from a since-corrected report about the investigation into possible collusion between then-candidate Donald Trump and Russia.

ABC News broadcast reported on Friday that Michael Flynn, the former White Clan national security advisor, would testify that he was directed to amount to contact with Russians during the presidential campaign in 2016. Flynn pleaded sheepish to lying to the FBI about his post-election contacts with Russia’s ambassador to the U.S.

That write-up hit the markets hard, but ABC later corrected the story to say its source had clarified that Trump conveyed Flynn the directive “shortly after the election” to discuss strategies for action the Islamic State extremist group.

The news “provides a reminder of the cloud persisting over the Trump administration,” Shane Oliver, head of investment tactics and chief economist at AMP Capital, wrote in a weekend note. He added that could undertaking “bouts of volatility next year and just adds to the likelihood that the GOP intent lose control of the House in the November 2018 mid-term elections.”

“Anyhow, we remain of the view that it does not change prospects for tax reform (it’s already wellnigh there) and in fact just highlights the pressure on Congress to get it done,” Oliver distinguished.

In the currency market, the dollar rose from an overnight low of 92.881 to switch at 93.101 against a basket of currencies at 11:31 a.m. HK/SIN.

Among other currency majors, the Japanese yen called 112.73 to the dollar, weakening from an earlier low of 112.39. Despite the relevant weakness in the yen, some of the major exporters remained under pressure: Toyota was down 0.21 percent, Sony reversed anciently losses to trade up 0.97 percent and Mitsubishi Electric was down 0.27 percent. Nissan shares climb 0.46 percent.

Typically, a weaker yen is a positive for Japanese exporters since it expansions their overseas revenue when converted back into local currency.

The Australian dollar softened against the greenback to trade at $0.7603 from a previous high of $0.7613, and the euro was at $1.1871.

Somewhere else, oil prices were also lower. U.S. crude was down 0.72 percent at $57.94 and broad benchmark Brent fell 0.6 percent at $63.35 a barrel.

— CNBC’s Fred Imbert and Jacob Pramuk helped to this report.

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