Asian shares inched ahead on Wednesday while the dollar and commodities held gains as investors shook off disappointment about U.S. President Donald Trump’s failed healthcare bill and focused on an improving outlook for global growth.
Asian stocks advanced on Tuesday after Wall Street steadied and the dollar bounced from a four-month-low, as anxiety over Donald Trump’s setback on healthcare reform gave way to tentative hopes for the U.S.
The dollar fell to its lowest level against the yen since late November in Asia on Monday on heightened political risk concerns as a Republican-controlled Congress and presidency are in focus to deliver on economic plans for tax cuts and spending following a failed effort to reform healthcare.
The dollar recouped a little lost ground on Friday amid signs a delayed vote on President Donald Trump’s healthcare bill would go ahead later in the day, though it remained unclear whether it would pass.
Asian stocks posted their biggest drop in two weeks on Wednesday as growing doubts about Donald Trump’s economic growth agenda prompted investors to dump risky assets and rush to safe havens such as gold and government debt.
Asian shares hit 15-month highs on Tuesday while the dollar and U.S. bond yields were on the back foot on the prospect of a less-hawkish Federal Reserve policy trajectory.
Asian stocks were mixed on Monday in thin trade, following Wall Street’s declines and the G20’s decision to drop a pledge to avoid trade protectionism, while the Federal Reserve’s less hawkish-than-expected comments continued to drag the dollar lower.
Asian stocks advanced on Friday, set for their best week since July, while the dollar continued the slide that began after the Federal Reserve indicated it was unlikely to speed up monetary tightening.
The dollar nursed painful losses in Asia on Thursday while sovereign bonds savored their biggest rally in nine months after the Federal Reserve hiked interest rates, as expected, but signaled no pick-up in the pace of tightening.
Asian stocks slipped on Wednesday as investors took profits before a U.S. central bank policy meeting that could signal how much monetary tightening to expect during the remainder of the year, with an immediate rate hike fully priced in by markets.