- Home
- >
- Daily Accents
- >
- Positivism in the US has returned, can we expect the same in Asia?
Positivism in the US has returned, can we expect the same in Asia?
Rating:
Loading...What to expect during the Asian session?
Taking into account the growth of US and European stocks today, we expect the accumulated positive sentiment to shift to Asia. The economic calendar remains comparatively poor on important economic data, with Japan's third-quarter GDP figure being the most significant event. Quarterly GDP growth is expected to grow by 0.4% compared to 0.3% in Q2. On an annual basis, economists' expectations are that Japanese economy's growth will reach 1.5%, up from 1.4% in Q2. Better data than expected would support Asian indices. With good data, the JPY will also receive support, but limited, as investors are currently trading on stock market rises and this has a negative impact on hedging instruments such as the yen.
Which sectors should we target during the Asian session?
Technology companies today are definitely the Hot Deal for investors, both in Europe and the US, reflecting the Trump administration's ability to achieve the tax reform that will help the sector with fresh capital. Taking this into account, we expect growth in technology companies in Asia, as most of them are directly linked to the giants from the US and Europe.
The banking sector is also directly affected by Trump's policy and any progress has a positive impact on the sector. As seen from the Asian country, China earlier this month earlier took a big step toward cutting down on the banking sector, which has a strong positive impact on the financial companies in the region. For this reason, Asia's financial sector is highly sensitive to US and European promotions and provides good prerequisites for purchases.
Jr Trader Petar Milanov
Varchev Traders Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
