Address

Precise Investors

Stocks & Shares

Asian shares start New Year on steady footing

shares-rise

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.1% in early trade but was still staying near a five-month high it touched last week

Asian shares started the first trading day of the New Year on a steady footing on Tuesday, as investors returning after a holiday looked ahead to fresh trading catalysts from key economic releases later in the week.

Risk appetite was strong after global shares ended 2023 with their biggest annual increase in four years, led by the prospect that major central banks globally could begin easing rates this year in a major boost for consumers and businesses hit by high borrowing costs.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.1% in early trade but was still staying near a five-month high it touched last week.

Japan markets were shut for a holiday, which meant there was no cash trading of Treasuries either.

We turn the page on another eventful year in markets, where central bank liquidity, a strong U.S. economy, and the Federal Reserve engineering the highest real policy rates since December 2007, which allows for policy normalisation, all offering tailwinds for some robust returns for risky assets, said Chris Weston, head of research at Pepperstone.

We could see equity just keep going on its merry ascent and we need to be open-minded to all possibilities, he said.

But with fund manager sentiment the most upbeat since January last year, cash levels having been reduced and many other signs of broad exuberance, it feels like the distribution for risk is becoming more evenly distributed, Weston added.

Market focus now turns to a range of data due this week which will give further clarity on how much room there is for major central banks globally to ease monetary policy, and how soon those rate cuts could come.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Precise Investors. The information provided on Precise Investors is intended for informational purposes only. Precise Investors is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Leave a Reply