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Nov 16, 2016

Asian Markets Closing on November 16, 2016: Asian Markets Rise as Banks Bask in Hopes for Trump


www.marketwatch.com
marketwatch.com
 
Ese Erheriene 
 
Asian shares were higher early Wednesday, with financial stocks tracking gains in the U.S., as investors added to their bets that U.S. President-elect Donald Trump’s policies would be good for global banks.

The Nikkei Stock Average NIK, +1.10% closed up 1.1%. Australia’s S&P/ASX 200 XJO, +0.03% ended flat, Korea’s Kospi SEU, +0.62%  finished 0.6% higher and Indonesia’s JSX Index JAKIDX, +2.11%  gained 1.9%. Asian currencies, on the other hand, were largely stable against the U.S. dollar, which has strengthened recently.
On Tuesday in the U.S., investors largely stuck with the recent trend of dumping bonds and dividend-paying shares like utilities in favor of financial and infrastructure stocks.
Read: There are three possible outcomes for bonds, and two are bad
Among Japanese financials, Mitsubishi UFJ Financial 8306, +6.19%  surged 6.2%, Sumitomo Mitsui Financial 8316, +5.25%  jumped 5.3% and Mizuho Financial 8411, +6.25%  rose 6.3%.
Elsewhere, Taiwan’s finance subindex ended 0.2% higher, the S&P/ASX financials subsection added 0.6% and the Philippines’ finance index was up 0.5%.
Expectations for higher interest rates and reduced regulation under Trump’s presidency “bodes well for the financials, not just in the U.S. but across the world,” said Woon Tian Yong, an investment analyst at Phillip Futures. “Their profit margins will be wider with higher yields.”
In addition, Bank of Japan Gov. Haruhiko Kuroda said Wednesday he was watching regional banks there with “deep interest,” an indication of his concern that their earnings prospects could worsen with deeper rate cuts.
In Hong Kong, stocks reversed earlier gains in the last hour of trading, dragged lower by a mixed open in European markets; the U.K.’s FTSE 100 UKX, -0.68%  was recently down 0.1%. The Hang Seng Index HSI, -0.19%  ended down 0.2%. In the morning, it was up by as much as 0.8%.
OPEC deal in focus
Meanwhile, crude oil prices shot up overnight, as members of the Organization of the Petroleum Exporting Countries hammered out the details of a proposed output cut, which helped shares of producers across Asia.
Read: How to play the OPEC deal and beat the oil investor herd
Japanese oil explorer Inpex 1605, +2.96%  ended up 3%, and Japan Petroleum Exploration 1662, +2.28%  added 2.3%. Oil Search OSH, +3.35%  and Woodside Petroleum WPL, +2.44%  in Australia jumped 3.4% and 2.4%, respectively. Chinese oil major Cnooc 0883, +1.78%  was up 1.8% in Hong Kong.
The OPEC news “gave a lot of optimism,” said Jingyi Pan, a market strategist at IG Markets. “We are pretty close to the [Nov. 30] meeting, so some of this optimism is getting priced into the market.”
Elsewhere, Asian technology stocks rebounded from recent declines, taking a nod from the U.S. This follows brisk retail sales growth in the U.S. for October, supporting hopes for a strong holiday shopping season.
South Korea’s Samsung Electronics 005930, +1.23%   rose 1.2%. In Taiwan, Foxconn Technology 2354, +2.09%   added 2.1%, while HTC Corp. 2498, +1.15%   rose 1.2%.
Nintendo 7974, +2.78%    shares rose 2.8% after the company unveiled plans to launch its highly anticipated mobile app “Super Mario Run” — Nintendo’s first-ever smartphone game featuring one of its iconic characters — next month.
In China, the tech-heavy Shenzhen ChiNext board ended up 0.2%, outpacing the main Shenzhen index 399106, +0.02% , which closed flat. The Shanghai Composite Index SHCOMP, -0.06%   opened higher but closed down 0.1%. The Bank of Shanghai surged on its trading debut after raising 10.7 billion yuan ($1.6 billion) in the biggest initial public offering in China so far this year. Shares of China’s second-largest municipal bank surged 44%, the first-day upward limit for new IPOs.