Most Asian stocks rose after U.S. equity gauges climbed to fresh records and the yen weakened, boosting Japanese shares.
About three stocks rose for every two that fell on the MSCI Asia Pacific Index, which traded little changed at 153.39 as of 9:03 a.m. in Tokyo. Japan’s Topix index added 0.2 percent after the yen fell 0.6 percent against the dollar on Monday. The Standard & Poor’s 500 Index rose 0.3 percent and the Dow Jones Industrial Average climbed 0.1 percent, both closing at all-time highs. Investors are awaiting this week’s U.S. housing data for clues as to whether the recovery in the world’s largest economy can withstand higher interest rates.
“Patchy U.S. data means that the Fed is highly unlikely to begin its policy normalisation process until late in the December quarter,” said Matthew Sherwood, Sydney-based head of investment strategy at Perpetual Ltd., which manages about $21 billion. “There has been a large upward movement in the U.S. dollar in the past ten months and this has clearly weighed on U.S. growth. The Fed could not possibly be convinced that the economy is on the right track until growth is above 3 percent for two consecutive quarters.”
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