Asian equity indexes traded mostly in green territory on Tuesday following solid gains in the US session as expectations for a tax reform continued to build among investors.
On the corporate front, Japanese automakers and retailers notched up, pushing the Nikkei upwards, while the technology sector capped gains.
In South Korea, automakers did not count on the luck, with Hyundai Motor shares falling more than half a percent over uncertainty regarding negotiations on the US-Korea free trade deal. According to sources, the Trump administration will a non-tariff policy for US car exports.
Wall Street top indexes reached new record highs as a widely expected tax reform bill is now on the verge to be approved by lawmakers. The decisive vote is due on Tuesday.
The Dow Jones industrial average added 0.57 percent to finish at 24,792.2 on Monday. The S&P 500 increased 0.6 percent to 2,690.16 and the Nasdaq was up 0.8 percent to 6,994.76.
The main goal of the tax reform is to significantly reduce the corporate tax rate, improving conditions for corporations to relocate money currently placed abroad. The idea is to take the 35 percent rate to 21 percent in 2018. Individuals will also see less tax pressure.
Despite expanding optimism over the tax issue, the American currency eased against major competitors during the session.
The US dollar index, which measures the greenback against six major currencies, was trading unchanged at 93.24 by the time of this writing.
<<< Next in Europe >>>
Ahead in today’s session, Germany will present business expectations, current assessment and the lfo business climate index for December as of 09:00 GMT. Economists are pointing at 110.7, 124.7 and 117.6 readings respectively. In the Eurozone, focus will be at employment data. Wages for the third quarter are up at 10:00 GMT, with 2.00 percent seen.
<<< Next in the United States >>>
Building permits and housing starts for November will be out at 13:30 GMT, with 1.275 and 1.230 million units seen respectively. The third-quarter current account will be presented at 13:30 GMT, with an estimated deficit of $118 billion.
<<< Asian Stock Indexes at 05:20 GMT >>>
Australia ASX S&P +39.80 +0.65% 6,169.80
Shanghai Composite +17.70 +0.54% 3,285.63
Hong Kong Hang Seng +236.84 +0.82% 29,287.25
Japan Nikkei 225 -4.46 -0.02% 22,897.31
Taiwan TSEC 50 Index -47.69 -0.45% 10,458.83