TOKYO (Reuters) – Asian stocks reached all-time highs on Thursday, with Wall Street picking up bullish investors' confidence as the dollar retreated from three-year lows as comments from Central Bank officials European currency mitigated the recent rebound of the euro.
Spreadbetters expects the FTSE .FTSE of Great Britain to open 0.1 percent lower, the German DAX .GDAXI start 0.3 percent higher and the French CAC .FCHI open a 0.2 percent.
MSCI's broadest stock index of Asia and the Pacific outside of Japan. MIAPJ0000PUS was 0.2 percent higher after climbing up to 0.4 percent to a new record.
KOSPI .KS11 from South Korea was effectively flat. The Japanese Nikkei .N225 reached its highest level since the end of 1991 before ending with a 0.4 percent decline.
Shares in Shanghai rose 0.9 percent, driven by data showing that China's economy grew by 6.8 percent in the October-December quarter of the previous year, the same rate as the previous quarter. and slightly better than most economists.
U.S. Stocks rose on Wednesday and the Dow Jones closed above 26,000 for the first time as investor expectations of higher earnings lifted shares in all sectors. [.N]
Optimism about the prospects for sustained strong global growth and better corporate profits has helped to share markets in early 2018.
"Events related to North Korea pose potential risks, but there are very few factors that hold stocks at this time, "said Junichi Ishikawa, FX strategist at IG Securities in Tokyo.
"And US bullish stocks, higher Treasury yields and signs that the recent euro rally is continuing are all factors favorable to the dollar," Ishikawa said.
The dollar index against a basket of six major currencies .DXY rose 0.3 percent to 90,793 after retreating overnight from a three-year low of 90,279 set earlier in the week.
The euro was traded at $ 1.2203 EUR =, falling from a maximum of three years above $ 1.2300 after some ECB officials expressed concern about the strength of the currency. The common currency had advanced this month on expectations that the central bank would take measures to reverse stimulus measures to normalize monetary policy.
The dollar remained stable at 111,270 yen JPY = after rising 0.75 percent overnight, when it rebounded from a four-month low of 110,190.
Two-year Treasury yield US2YT = RR remained close to a nine-year high of 2.051 percent on Wednesday due to expectations that the Federal Reserve will continue to adjust monetary policy this year.
In commodities, crude oil prices rose before data showing a decline in US crude inventories and rebels in Nigeria threatened to attack the country's oil infrastructure before cutting their profits. [O/R]
U.S. LCOc1 crude futures rose 2 cents to $ 63.99 a barrel. On Tuesday, they reached a three-year high of $ 64.89.
Many analysts warned that the recent escalation in the price of oil could lose momentum.
"We believe that the positive side is now limited for oil prices: US shale oil production will increase by a good 111,000 barrels per day (bpd) next month to 10 million bpd, and it will rise to about 11 million bpd by the end of next year, "said Fawad Razaqzada, market analyst at Forex.com.
"This would put the US on par with Saudi Arabia and Russia's production," Razaqzada said.
Spot gold XAU = fell 0.1 percent to $ 1,327.56 an ounce, with the dollar bouncing back from the four-month high of $ 1,344.43 set Monday. [GOL/]
Shinichi Saoshiro's report; Additional reports by Kevin Yao in Beijing and Henning Gloystein in Singapore; Edition of Simon Cameron-Moore and Sam Holmes