Asian shares edge higher, dollar rally takes a breather
Asian shares nudged higher on Tuesday, tracking small gains on Wall Street, while the U.S. dollar paused after a sharp rally as month-end flows lift sentiment and investors adjust to expectations of more interest rate hikes.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was 0.25% higher but was set to end the month down about 6%. Japan’s Nikkei (.N225) rose 0.44%, while Australia’s S&P/ASX 200 index (.AXJO) gained 0.51%.
China shares (.SSEC) was up 0.4% while Hong Kong’s Hang Seng index (.HSI) was 1% higher but was on track to end its three month winning streak as the China reopening rally loses steam.
“The reopening story doesn’t seem to be providing much uplift currently,” ING economists said.
China shares have also been weighed down by rising geopolitical tension, with U.S.-China relations the dominant uncertainty at the forefront of investor minds.
ActivTrades market analyst Anderson Alves said month-end flows will likely drive short-term price action as traders rebalance portfolios and market exposure.
This report’s information was first seen on REUTERS; to read more, click this link.