Asian shares hit 21-month highs, while dollar weakens

Economy - Nikhil S - Mar 21,2017

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asian shares hit 21 month highs while dollar weakens

On Tuesday, Asian shares saw 21-month highs while the U.S. bond and dollar results were low based on the prospect of a less aggressive than earlier foreseen Federal Reserve policy track.

Running its eighth successive day of gains with tech-heavy Seoul and Taipei shares MSCI's widest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS increased by 0.3 percentage .KS11 .TWII reaching two-year highs whilst Hong Kong's Hang Seng .

 Japan's Nikkei .N225 witnessed a low at 0.3 percentage, valued by financial stocks, which were affected by lower U.S. yields and exporter stocks that dropped on the yen's increase against the dollar.

Worries over protectionism cast a fear after financial leaders of the world's biggest economies promised to keep global trade open and free, yielding to an increasingly protective United States, while Asian shares have been backed by signs of high global economic growth.

Wall Street shares drifted lower on Monday as investors worried that President Donald Trump's plan to cut taxes and boost the economy could take longer than earlier expected.

Tatsushi Maeno, Okasan Asset Management’s senior strategist said, the U.S. stocks valuations are becoming more expensive, so for now he expects “the market to be capped”.

Decreased results weakened the greenback's charm, bringing down the dollar to three-week lows close to 112.26 yen JPY= in early Asian trade. The dollar's index versus a basket of six major currencies .DXY =USD reached 100.24, since hitting a six-week drop of 100.02 on Monday.

The vision of slower U.S. rate boosts has been aiding high-yielding currencies, while the Australian dollar AUD=D4 traded at $0.7706, since reaching a 4-1/2-month high of $0.7748 on Monday. It has increased 2.0 percentage after the Fed's policy meeting last week.