Asian stocks up on eased UK uncertainties

Asian stock markets traded higher on Wednesday following Dow’s record-high close overnight, as the confirmation of Britain’s new leader eased uncertainties while the stimulus hopes also helped lift stocks in the region.

KEEPING SCORE: Tokyo’s Nikkei 225 jumped 1 percent to 16,256.81 and South Korea’s Kospi added 0.3 percent to 1,998.22. Hong Kong’s Hang Seng index rose 0.4 percent to 21,309.22. Australia’s S&P/ASX 200 gained 0.3 percent to 5,367.70. Stocks in mainland China, Singapore and Indonesia were also higher.

ANALYST’S TAKE: ’Market sentiment has improved as Britain’s new prime minister has been confirmed and thus substantially reduced the political uncertainties following the Brexit vote,’ said Margaret Yang, a market analyst at CMC Markets Singapore, referring to Britain’s vote last month to leave the European Union.
Although there is still a lack of clues as to when negotiations will start and the new terms of the U.K.’s relationship with the EU still remain uncertain, at least now we know there is a plan and the roadmap is clearer.

WALL STREET: The U.S. markets closed higher on Tuesday with Dow Jones industrial average finishing at a record high. The Dow rose 120.74 points, or 0.7 percent, to 18,347.67. The S&P 500 gained 14.98 points, or 0.7 percent, to 2,152.14. The Nasdaq composite rose 34.18 points, or 0.7 percent, to 5,022.82.

OIL: Benchmark U.S. crude fell 35 cents to $46.45 per barrel in New York. The contract added $2.04 to close at $46.80 a barrel on Tuesday. Brent crude, a standard for international oil prices, lost 30 cents to $48.17 a barrel in London.

CURRENCIES: The dollar fell to 104.20 yen from 104.84 yen. The euro rose to $1.1067 from $1.1063.