Asian markets seem to be preparing for another rally after stocks in the US rose against the backdrop of the growing opportunity for corporate tax cuts.
Futures of Australian, Japanese, and Chinese indices show an increase and show that the week is likely to end on green. The SP500 rose sharply after Cisco Systems' financial results led to a rise in the technology sector. We expect positivism in the technology sector to shift to Asia as well.
As Washington stepped closer to tax reform, and China's central bank injected the most money since January this year in its financial system, investors have pledged sustainable global growth. The chances for US companies to obtain tax relief appear to have improved after Republican Senator Ron Johnson, who announced he was opposed to the Senate's tax plan, said he was optimistic that his concerns could be resolved. Parliament passed its version of the bill on Thursday.
ASX200 is currently trading at 5979 levels, Nikkei 225 is expected to open at about 22,585 levels, and Chinese Hang Seng at 11,644 levels.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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