Asian shares on Wednesday showcased another decade high, with data showing Chinese import demands keeping its buoyancy. The dollar slipped in light of lingering concerns about the Republicans’ plans for major US tax cuts, which are facing some headwinds.

Beijing’s October imports reported a 17.2 percent rise from a year ago. This beat forecasts that anticipated only 16 percent. However, export growth fell just below estimates at 6.9 percent.

China’s blue-chip CSI300 index swelled 0.6 percent to reach ground last trod in the middle of 2015, which was just one of many milestones across the region.

Meanwhile, Hong Kong stocks smashed a decade top with the help of investors’ enthusiasm for tech stocks. Shares in China Literature Ltd ballooned twice its original in their debut.

Similarly, MSCI’s broadest index of Asia-Pacific shares outside Japan soared 0.2 percent, leaving previous losses behind. This has been recorded as its highest since November of a decade ago.

On the other hand, Japan’s Nikkei slipped 0.2 percent, following its best close since 1992. Australia’s main index hit its highest reading since 2008.

EMini futures for the S&P 500 had a drop due to a report saying that Senate Republican leaders were thinking of a delay, which reportedly would last for a year, in the implementation of a corporate tax cut, a focus of the House plan.

Trump’s Asian Visit and Warning


Meanwhile, investors are keeping close tabs on US President Donald Trump’s Asian trip, as Trump gave a blunt warning to North Korea’s Kim Jong-un.

“Do not underestimate us. Do not try us,” said Trump, followed by a condemnation of the “dark fantasy” of life in the hermit kingdom.

This tour has been described to come at a precarious moment for the president. The trip presents a crucial test for Trump, who is aiming to reinforce and reassure his Asian allies.

“The trip comes, I would argue, at a very inopportune time for the president. He is under growing domestic vulnerabilities that we all know about, hour to hour,” said Jonathan Pollack, who is a senior fellow at the Brooking Institution in Washington.

Other Figures

In the currency market, analysts at Citi described trading as a “random walk,” indicating that there is no clear or exact trend to follow.

The dollar slid 0.8 percent at 94.833 against a basket of six other major currencies.

After making record-high peaks, Wall Street slipped on Tuesday. The Dow ended up 0.04 percent. The S&P 500 lost 0.02 percent, while the Nasdaq 0.27 percent.

Partly due to concerns over flattening yield curves, the S&P 500 financial index fell 1.33 percent, leading decliners.

The US yield curve has steeply flattened in the last couple of weeks. The gap between 2- and 10-year yields shrunk to just 68 basis points, which was the smallest since 2007.

The move reflects bets that the Fed is set to impose hikes in December, pushing up short-term yields. The move is expected to make inflation stay lower for longer, pulling down longer-dated yields, flattening the curve.

Flatter curves are at times indications of slower economic growth, although they can also suggest excessive risk taking while investors lend for longer and longer, awaiting better returns.

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