(MENAFN– ecpulse)
Asian stocks rallied Monday as traders priced in growing bets of a reduction in Federal Reserve stimulus and the weaker yen stood at a four-week low against the euro.
Equities ended higher tracing the S&P 500`s all-time high last week, when Wall Street welcomed a cheerful raft of corporate earnings results. Moreover, the market continued to rally on a potential delay in tapering of the Fed`s bond-buying program, as the U.S. government battles to avoid default on its debt, even after the borrowing limit was extended to as early as next year.
- China Shanghai Composite settled higher 1.62% at 2,229.24
- Australi S&P/ASX 200 settled at five-year, rising 0.57% to 5,351.77
- Japan`s Nikkei traded at three-week high, adding 0.91% to 14,693.57
- Japan`s Topix rose to a three-week high, settling higher by 0.57% to 1,212.36
- Korea`s Kospi was little changed at 2,053.01
On Wednesday, the Democrats and Reppublicans crafted a last-minute deal, ending a 16-day government shutdown and extending the already sky-high debt ceiling to avert a potential default that risked the outlook of the world`s largest economy and the global monetary system.
The fragile yen, which lent support to equities today, weakened early in the session after Japan posted unexpected 932.1 billion-yen trade deficit in September, the 15th consecutive month of deficit.
The dollar was up for the second day at 98.07 yen, hitting an intraday high of 98.14 in Asia this morning, and up from 97.94 yen hit Friday in New York.
The euro was little changed at 134.06 yen, compared with a four-week high of 134.31 hit earlier today.
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