On Tuesday, Japan’s Nikkei 225 grew 0.54% with shares of Toshiba climbing 1.61% after reports that the troubled company wants to raise at least ¥1 trillion or $8.83 billion from the sale of a majority stake in its NAND flash memory business.
Meanwhile, Hong Kong's Hang Seng index added 0.21%. Turnover in Hong Kong shares has grown remarkably in recent weeks. The Shanghai composite advanced 0.16%, while Taiwan Weighted rose 0.11%.
Philippines stocks edged higher as well, with the PSEi Composite inching up 0.02%. However, in Australia, the S&P/ASX 200 dipped 0.11%.
With the US markets closed for the Presidents Holiday last Monday, Asian markets have had few global cues off which to trade. European markets are broadly anticipated to follow this and are seen lingering in a narrow band.
Focus on Trump economic plans
Earlier in Tuesday’s trading session, Asia stocks rose as the market focused on the expected policy information of US tax cuts and spending plans to be revealed by President Donald Trump in the coming weeks.
Investors intend to hold the US president a vow to update the markets on his economic plans in the next two or three weeks, which pressures the Trump administration to coax the Congress into starting a draft.
Chinese stocks, equities
Asia shares further consolidated later in the day with Chinese equities soaring to a new 2-1/2 month peak as domestic funds dealt with financial counters on projections that the China’s economy has recovered.
Chinese stocks led regional gainers with the mainland indexes extending almost a 7% increase over January. This can be attributed to an entry of fresh funds from domestic institutional investors and an improving outlook for the world’s second biggest economy.
“We upgraded our China equities call last month because of the strong economic data and comments coming out from the new U.S. administration pointing to a softer stance toward China,” remarked Francis Cheung, the head of China-Hong Kong strategy at CLSA.
China's blue-chip index, the CSI300, notched its best day in six months yesterday following reports that pension funds will begin pumping in funds into China's stock markets.
Despite the rise in mainland stocks, valuations are still in the broadly middle of the pack in Asia with price-to-earnings multiples for Chinese shares standing at 19.7, quite far below Australia's 25 and India's 23.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.2% and held below a 19-month high touched last Thursday. The index has climbed over 11% since December 23, which indicated the low in a selloff initiated by the shock victory of Donald Trump in the previous November US presidential election.
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