Asian shares are expected to open higher on Friday as global equities appeared to bounce back after declines earlier in the week.
U.S. House Republicans on Thursday passed a bill to cut taxes on businesses and individuals, the biggest step yet in the GOP’s effort to alter the country’s tax system. The House plan cuts the corporate tax rate to 20 percent from 35 percent and lessens the number of personal tax brackets to four from seven.
Republicans are attempting to pass their tax reform plans by Christmas, but Senate Republicans, who have a less robust majority than in the House, will first have to pass their version of the bill.
In response, the dollar was a touch firmer, with the dollar index steady at 93.911 at 6:54 a.m. HK/SIN after rising as high as 93.998 in the Thursday session. Against the yen, the greenback edged up to trade at 113.03.
Meanwhile, U.S. data released on Thursday was upbeat. Industrial production grew 0.9 percent in October, compared to the 0.5 percent forecast.
Equity markets bounced back after sliding earlier in the week, with U.S. and European stocks finishing the Thursday session with gains.
Stateside, equities rose after the House tax reform bill was passed and as investors digested better-than-expected quarterly earnings. The Dow Jones industrial average closed at 23,458.36 after rising 0.8 percent, or 187.08 points, on the day, led by advances in Wal-Mart and enterprise IT company Cisco. The S&P 500 tacked on 0.82 percent to end at 2,585.64 and the Nasdaq composite gained 1.3 percent to hit a record record close of 6,793.29.
In Asia, futures implied Japanese equities would rally when markets opened on Friday. Nikkei futures traded in Chicago and Osaka were up 1.07 percent at 22,590 compared to Thursday’s close of 22,351.12.
Down Under, the S&P/ASX 200 was up 0.57 percent in early trade.
Toshiba is looking to sell its personal computer operations to Taiwan’s Asustrek Computer, Nikkei reported on Friday. The Japanese conglomerate on Tuesday said it had sold its television business to Chinese electronics company Hisense.
Automaker Subaru, meanwhile, said it would was likely to sustain around 20 billion yen ($177 million) in costs over an inspection scandal in Japan, Reuters said.
Oil prices once again slipped on Thursday as investors focused on increasing U.S. production and inventories despite hopes that output cuts led by the Organization of the Petroleum Exporting Countries would be extended.
The economic calendar for Friday is fairly light (all times in HK/SIN):
- 8:30 a.m.: Singapore October non-oil exports
- 12:00 p.m.: Malaysia third-quarter GDP
- 7:30 p.m.: India foreign exchange reserves
— CNBC’s Jacob Pramuk contributed to this report.
Source: cnbc china
Asian shares expected to extend gains after US stocks rally