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Nikkei Gains In Asia, But Greater China Down With Hang Seng Off 0.33%

Published 09/28/2017, 12:10 AM
© Reuters.  Asian shares mixed
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Investing.com - Asian shares were mixed on Thursday with investors mulling the regional effect of the Trump administration\'s proposed tax plans.

The Nikkei 225 rose 0.34%, while Australia\'s S&P/ASX gained 0.10%. In Greater China, the Shanghai Composite fell 0.09% and the Hang Seng index eased 0.33%.

Chinese insurer ZhongAn Online made its debut on the Hong Kong Stock Exchange on Thursday and saw its stock climb to HKD68.15, up 14.2%. The company is backed by prominent names, including Alibaba (NYSE:BABA) Group Holding\'s Jack Ma, Tencent Holdings\' Pony Ma and Ping An Insurance Group\'s Ma Mingzhe.

Overnight, the Dow Jones industrial average closed sharply higher on Wednesday, led by a surge in financials amid rising expectations that the Federal Reserve will hike rates for third time later this year.

The Dow Jones Industrial Average closed higher at 22,344.48. The S&P 500 closed 0.41% higher while the Nasdaq Composite closed at 6453.26, up 1.15%.

A surge in financials lifted the broader market higher as the prospect of a year-end rate hike increased demand for bank stocks which usually benefit from a rising interest rate environment.

Higher interest rates are seen as boon for banks, boosting net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to their lenders.

JPMorgan Chase & Co (NYSE:NYSE:JPM), Goldman Sachs Group Inc (NYSE:NYSE:GS) and Bank of America Corp (NYSE:NYSE:BAC) closed more than 1% higher.

Also adding to the rally on Wall Street was renewed investor hope for tax reform after the U.S. Congress and the White House unveiled plans to change America’s tax code in a proposal that slashes taxes on businesses the wealthy.

On the economic front investors digested a duo of mixed reports on the U.S. economy as durable goods orders grew while housing activity remained subdued.

The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 0.9 % last month after an upwardly revised 1.1% increase in July.

The housing sector, however, continued as the National Association of Realtors’ pending home sales fell 2.6% to 106.3 in August. That was the lowest reading since January 2016.

In corporate news, shares of Nike (NYSE:NYSE:NKE) slumped 3%, as an earnings report highlighted that revenues in Nike’s domestic market continued to decline.

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