Asian stocks go up as greenback edges back
On Friday, Asian stocks soared, as the Thanksgiving break in America helped to slow a relentless soar in the greenback that has sucked capital out of most emerging markets.
The respite for Asian assets might be short-lived, though with American Treasury yields resuming their ascend after the holiday, as traders bet that President-elect Trump is going to adopt policies, increasing spending and debt and also spur higher growth as well as inflation.
Outside Japan, MSCI's broadest index of Asia-Pacific shares contributed 0.3%. It’s braced for ending the week 1.4% higher, its biggest weekly revenue for two months.
However, it remains down nearly 3% from its close on November 8 before Trump's sudden win. His protectionist campaign promises are mostly considered to be negative for the region.
Emerging market stocks have also taken a hit, with the MSCI Emerging Markets index tumbling 0.4% on Friday. In spite of the fact, the index is up 0.9% for the week, it’s still almost 6%below its November 8 close.