Wednesday 13 July 2016

Asian Shares within Reach of 2016 peak as risk Appetite Improves

Asian shares came within reach of testing their 2016 peak on Wednesday as prospects of solid US growth and accommodative economic policy in major countries whet investors risk appetite damaged by uncertainty from Brexit. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent in early trade to 426.62, just below its year-to-date high of 428.22. Japan's Nikkei gained 1.9 percent. 

MSCI's broadest gauge of the world's stock markets has recovered all the losses after Britain's referendum to hit its highest level in over a month. "A while ago, everything looked so uncertain on Brexit. But now the UK looks set to have a new prime minister and negotiations may begin earlier. 

That is soothing investor sentiment," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management. Interior minister Theresa May is set to take over as Britain's prime minister on Wednesday. On Wall Street, S&P 500 gained 0.7 percent to a new record close of 2,152.14 while the Nasdaq turned positive for the year.


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