Asian Shares Climb Following U.S. Highs

The bulls are gaining momentum as the global equity rally stretched to Asia.

Tokyo shares jumped to the highest level since December 2015 while Australian equities rose the most in three months after U.S. indexes set records on signs growth is firming worldwide. The dollar extended gains after Federal Reserve Governor Lael Brainard supported the case for an interest-rate hike “soon.” Treasuries were steady after a three-day slump and gold retreated.

Brainard, who for months has played the role of lead dove at the Fed arguing to keep rates lower for longer, said in a speech at Harvard University “it will likely be appropriate soon to remove additional accommodation.” Investors are looking ahead to a speech by Chair Janet Yellen on Friday to reaffirm a view that interest rates are likely to go up this month. The odds for a Fed rate hike in two weeks swelled past 65 percent.

Data showed U.S. manufacturing expanded last month at the fastest pace in three years and an acceleration in German inflation added to signs of momentum in Europe’s largest economy. While Donald Trump provided few specifics in his address to Congress, he reiterated broad proposals for boosting spending and cutting taxes that reinforced views that his administration will seek pro-growth policies.

Here are the main moves in markets:

Stocks

· Japan’s Topix was up 0.8 percent at 2:42 p.m. in Tokyo, at the highest since Dec. 18, 2015, even after paring an earlier gain of as much as 1.4 percent.

· Australia’s S&P/ASX 200 Index rose 1.3 percent, the most since November, and New Zealand’s S&P/NZX 50 Index added 0.4 percent.

· The Hang Seng pared gains to 0.4 percent after briefly topping 24,000, while China shares traded in Hong Kong were up 0.5 percent.

· The Kospi Index in Seoul rose 0.6 percent and the Jakarta Composite Index jumped 1 percent, the most this year, heading toward the highest close since Nov. 10.

· Futures on the S&P 500 slipped 0.1 percent after the index jumped 1.4 percent on Wednesday. The Dow rallied above 21,000, capping a 35-day run between thousand-point milestones that matches the fastest on record.

Currencies

· The yen fell 0.3 percent to 114.04 per dollar, after declining 0.9 percent Wednesday. The currency has lost 1.7 percent this week.

· The Bloomberg Dollar Spot Index added 0.2 percent, climbing for a fifth straight day, the longest winning streak since May.

· The kiwi lost 0.2 percent. The currency has slipped for five straight days, including a 0.7 percent drop on Wednesday. The Aussie dollar fell 0.3 percent.

Bonds

· Yields on 10-year Treasuries were steady at 2.46 percent, after climbing six basis points Wednesday.

· Australian benchmark yields slipped two basis points to 2.79 percent, while those in New Zealand rose three basis points to 3.32 percent.

Commodities

· Gold slipped 0.3 percent to $1,246.42 an ounce. The metal was at the highest level in more than three months last Friday.

· Oil retreated 0.6 percent to $53.52 a barrel, dropping for a third day. That’s the longest losing streak in two months as record-high U.S. stockpiles cast doubt on OPEC’s efforts to drain a global surplus.

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