Asia’s Wednesday trading is set to take its cues from signs of confidence elsewhere: U.S. Stocks edged up and the euro firmed overnight after Catalonia held back on an outright declaration of independence.
Catalonia’s leader on Tuesday asserted that Catalonians had won the rights to independence, but held off declaring the region’s separation from Spain. Instead, Catalan leader Carles Puigdemont asked for further talks with the government of Spain.
The euro was firmer overnight as investors digested the developments in Catalonia and strong export data out of Germany for the month of August. The common currency stood at $1.1809 at 6:56 a.m. HK/SIN after touching as high as $1.1811.
Stateside, stocks closed higher on Tuesday after retailer Wal-Mart announced a large share buyback plan. The Dow Jones industrial average tacked on 0.31 percent, or 69.61 points, to close at a record 22,830.68, the S&P 500 advanced 0.23 percent, or 5.91 points, to end at 2,550.64 and the tech-heavy Nasdaq finished the session up 0.11 percent at 6,587.25.
For Asia, Nikkei futures traded in Chicago were up 0.1 percent at 20,845 and Osaka futures were off 0.06 percent at 20,810. Those compared to the benchmark index’s previous close of 20,823.51.
Down Under, the S&P/ASX 200 was up 0.09 percent in early trade. The benchmark index had closed little changed on Tuesday, slipping 0.02 percent to close at 5,738.11.
In currencies, the dollar slid overnight, with traders attributing the move to elevated tensions between the U.S. and North Korea.
The dollar index, which tracks the U.S. currency against a basket of rivals, stood at 93.290 at 6:40 a.m. HK/SIN, compared to levels around 93.5 seen toward the end of Asian trade on Monday. Against the yen, the greenback traded at 112.39, which was below the roughly 93.6 seen earlier.
Ahead, the greenback is expected to focus on minutes from the Federal Open Market Committee due during U.S. hours.
On the energy front, oil gained overnight following comments from OPEC about market rebalancing. Brent crude advanced 1.5 percent to settle at $56.61 a barrel and U.S. West Texas Intermediate crude added 2.7 percent to settle at $50.92.
Here’s the economic calendar today (all times HK/SIN):
- 7:50 a.m.: Japan August machinery orders
- 8:00 a.m.: Dallas Federal Reserve President Robert Kaplan speaks at Stanford Institute
- 9:00 a.m.: Philippines August industrial production
- 4:00 p.m.: Taiwan September balance of trade
Source: cnbc china
Asian shares to focus on Wall Street gains and firmer euro