Asian stocks post biggest rise in a month as markets settle
HONG KONG: Asian stocks posted their biggest daily rise in a month on Monday following modest gains in U.S. shares, though the greenback came under renewed pressure as Washington's political turmoil undermines confidence in U.S. economic policy.
With U.S. President Donald Trump touring in the Middle East and Europe and no major economic indicators due this week, investors are hoping for a week of consolidation after a flurry of U.S. political controversies rattled markets.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.9 percent on Monday helped by gains in Australia and Hong Kong stocks despite fresh curbs unveiled by regulators on the property markets in the latter.
European stocks are set to follow in Asia's wake with key indices set to edge higher in opening trades.
"This won't have much impact on the market as buyers will continue to focus on the primary market rather than the secondary market where these measures will be more acutely felt," said Alex Wong, a fund manager at Ample Capital Ltd in Hong Kong, with about $130 million under management.
Chinese stocks were the only laggards in the region with mainland indices in negative territory as concerns over renewed economic slowdown and overbearing regulation to curb broad financial risks weighed on sentiment.
The bounce in Asian stocks has been the best performance since April. 25 and has notched up gains of more than 17 percent for the MSCI emerging stocks index compared to 8 percent for the world index - even as some investors grew wary of the outlook.
"At current market valuations, we advise investors to adopt an active approach by stock-picking across sectors and rotating to quality laggards," Carl Berrisford, an analyst at UBS Wealth Management wrote in note, citing valuations nearing their peak.
With U.S. President Donald Trump touring in the Middle East and Europe and no major economic indicators due this week, investors are hoping for a week of consolidation after a flurry of U.S. political controversies rattled markets.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.9 percent on Monday helped by gains in Australia and Hong Kong stocks despite fresh curbs unveiled by regulators on the property markets in the latter.
European stocks are set to follow in Asia's wake with key indices set to edge higher in opening trades.
"This won't have much impact on the market as buyers will continue to focus on the primary market rather than the secondary market where these measures will be more acutely felt," said Alex Wong, a fund manager at Ample Capital Ltd in Hong Kong, with about $130 million under management.
Chinese stocks were the only laggards in the region with mainland indices in negative territory as concerns over renewed economic slowdown and overbearing regulation to curb broad financial risks weighed on sentiment.
The bounce in Asian stocks has been the best performance since April. 25 and has notched up gains of more than 17 percent for the MSCI emerging stocks index compared to 8 percent for the world index - even as some investors grew wary of the outlook.
"At current market valuations, we advise investors to adopt an active approach by stock-picking across sectors and rotating to quality laggards," Carl Berrisford, an analyst at UBS Wealth Management wrote in note, citing valuations nearing their peak.