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Most Asian stocks trade higher on U.S. deal optimism; Nikkei up 0.18%

Published 10/15/2013, 12:34 AM
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Investing.com - Most Asian stocks traded higher Tuesday on optimism U.S. policymakers are close to striking a deal that will end the government shutdown.

In Asian trading Tuesday, Japan’s Nikkei 225 rose 0.18% a day after Japanese markets were closed for a holiday. On Monday evening in the U.S., senators gave some indication that an agreement to reopen the government will be announced Tuesday and that could also be pressuring gold.

Hong Kong’s Hang Seng added 0.58% while the Shanghai Composite added 0.14%. Shares on the mainland were dragged lower by financial services firms although health care names traded higher.

Economists expect China, the world’s second-largest economy to post third-quarter GDP growth of 7.8% after notching 7.5% growth in the second quarter.

Australia’s S&P/ASX 200 advanced 0.9% after the release of meeting minutes from the Reserve Bank of Australia.

"Members noted that the Australian dollar was still around 10 percent below its peak in April," according to the RBA minutes. The central bank has been steadfast in its view that the Aussie is overvalued and that it would like to see the currency fall further to help Australian industry

"Members agreed that the Bank should again neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them," according to the minutes.

New Zealand’s NZSE 50 added 0.29%.

"The underlying issue in the New Zealand housing market is a shortage of supply. In Christchurch this is a direct result of the earthquakes. In Auckland, the shortage has been growing over a much longer period, with weak rates of house building since 2005," according to the text of a speech given by Reserve Bank of New Zealand Deputy Governor Grant Spencer in Auckland today.

South Korae’s Kospi climbed 0.71% while Singapore’s Straits Times Index fell 0.45%. S&P 500 futures rose 0.13% a day after the benchmark U.S. index added 0.41%.


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