By - Reuters
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Asian shares rose to their highest in nearly two years on Wednesday, as strong Chinese trade data added to positive sentiment already fed by record highs in global equities overnight.
European stock markets were seen firmer, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open up as much as 0.2 per cent. Germany's benchmark DAX equity index ended at a record high on Tuesday.
US stock futures were steady to suggest a calm Wall Street open after the Standard & Poor's 500 Index hit an intraday record high and the Dow Jones industrial average closed above 15,000 for the first time the day before.
Investors are seeing better returns from equities than bonds, which have been hit by interest rate cuts by major central banks, with the Reserve Bank of Australia becoming the latest to do so on Tuesday.
"The RBA is just playing catch-up," said Evan Lucas, a market strategist at IG in Melbourne, noting central banks' moves around the globe. "The major benefactors of this cut will be risk stocks as income-plays flopped on the move."
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent to its highest since August 2011, driven by a 1 per cent gain in Australian shares to a new peak since July 2008. Hong Kong shares rose 0.6 per cent.
"The global monetary easing is in full flight, and this will continue to push money managers into the most compelling asset out there - equities," Chris Weston, chief market strategist at IG markets, said in a note to clients.
After last Friday's upbeat US monthly nonfarm payrolls and this week's German industrial orders showing unexpected strength, China followed suit on Wednesday with better-than-expected trade numbers for April, further cementing the positive mood.
China's exports and imports grew more than expected in April from a year earlier, possibly easing some of the concerns about weakness in the recovery of the world's second-largest economy and top consumer of many commodities following a run of below-par data in recent weeks.
However, doubts remained over the strength of real demand in China and the accuracy of the figures, with some analysts suspecting exporters may have overstated their business to sneak funds into the country and avoid capital restrictions.
Separately, as the country struggles to keep rising capital inflows at bay, dealers said China's central bank may be preparing to change the way it manages monetary policy by reintroducing bills as a liquidity management tool for the first time since 2011.
European stock markets were seen firmer, with financial spreadbetters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open up as much as 0.2 per cent. Germany's benchmark DAX equity index ended at a record high on Tuesday.
US stock futures were steady to suggest a calm Wall Street open after the Standard & Poor's 500 Index hit an intraday record high and the Dow Jones industrial average closed above 15,000 for the first time the day before.
Investors are seeing better returns from equities than bonds, which have been hit by interest rate cuts by major central banks, with the Reserve Bank of Australia becoming the latest to do so on Tuesday.
"The RBA is just playing catch-up," said Evan Lucas, a market strategist at IG in Melbourne, noting central banks' moves around the globe. "The major benefactors of this cut will be risk stocks as income-plays flopped on the move."
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent to its highest since August 2011, driven by a 1 per cent gain in Australian shares to a new peak since July 2008. Hong Kong shares rose 0.6 per cent.
"The global monetary easing is in full flight, and this will continue to push money managers into the most compelling asset out there - equities," Chris Weston, chief market strategist at IG markets, said in a note to clients.
After last Friday's upbeat US monthly nonfarm payrolls and this week's German industrial orders showing unexpected strength, China followed suit on Wednesday with better-than-expected trade numbers for April, further cementing the positive mood.
China's exports and imports grew more than expected in April from a year earlier, possibly easing some of the concerns about weakness in the recovery of the world's second-largest economy and top consumer of many commodities following a run of below-par data in recent weeks.
However, doubts remained over the strength of real demand in China and the accuracy of the figures, with some analysts suspecting exporters may have overstated their business to sneak funds into the country and avoid capital restrictions.
Separately, as the country struggles to keep rising capital inflows at bay, dealers said China's central bank may be preparing to change the way it manages monetary policy by reintroducing bills as a liquidity management tool for the first time since 2011.
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