Asian markets rally as investors shrug off nerves | 2017-11-08 |

Asian markets rally as investors shrug off nerves

    7th November, 2017 10:20:28 printer

HONG KONG: Asian markets rose Tuesday, tracking records on Wall Street as investors appeared to shrug off nervousness over tensions on the Korean peninsula, with US President Donald Trump visiting Seoul.

US stocks hit fresh highs for the second straight day while London's FTSE 100 also powered to a new record close, reports AFP.

The positive trend continued in Asia, where markets edged up despite concerns that Trump's two-day visit to South Korea would raise tensions with Pyongyang or trigger further weapons tests by the nuclear-armed regime.

Trump has traded military threats and insults with North Korea's leader Kim Jong-Un, dubbing him "Rocket Man" and prompting an unusually personal rebuke in return, with Pyongyang calling him a "mentally deranged US dotard".

Trump's angry outbursts about Japan and China engaging in "unfair" trade practices have also sparked worry among exporters, as the US leader continues to push for an end to the "massive trade deficit" with foreign countries.

Tokyo and Singapore were up 0.8 percent while Hong Kong gained one percent.

Shanghai rose 0.5 percent but Seoul lost 0.3 percent. Chip-related shares were broadly higher after Broadcom launched a $130-billion unsolicited bid for rival chip manufacturer Qualcomm in a cash and stock offer.

Renesas Electronics rose 1.61 percent to 1,449 yen while chipmaker Rohm gained 1.22 percent to 11,550 yen.

Sydney briefly broke above 6,000 points for the first time since the 2008 global financial crisis, signalling investor optimism about economic recovery as central banks begin to wind back their stimulus packages.

Australian mining stocks rose on the back of improving oil and iron ore prices.

Crude prices hit a two-year high last week and rose overnight, due to growing global demand as OPEC leads efforts to limit supply.

Traders are keeping a close eye on oil-rich Saudi Arabia, where a sweeping crackdown has seen princes, ministers as well as billionaire tycoon Al-Waleed bin Talal arrested on corruption allegations.