Published: Fri, November 25, 2016
Economy | By Melissa Porter

Asian shares gain, lifted by oil price rally on Wall Street

US equities opened higher on Tuesday, hitting new all-time highs, as investors awaited housing data and kept an eye on President-elect Donald Trump's policy agenda.

The S&P 500, Dow, and Nasdaq each scored their own record close, the first time all have done so on the same day since mid-August.

That love-affair was evident on Wall Street where the Dow.DJI closed up 0.35 percent and above 19,000 for the first time.

The Labor Department also reported a rebound in weekly jobless claims, while the University of MI said its reading on consumer sentiment in November came in much higher than previously estimated. "Momentum is proving strong enough to overrule overbought conditions, so we think it is appropriate to be buying breakouts".

Europe's broad FTSEurofirst 300 index .FTEU3 was up 0.12 percent, at 1,345.76.

OVERSEAS: Germany's DAX index shed 0.8 percent and the CAC 40 in France dropped 0.6 percent.

The Dow Jones Industrial Average became the latest gauge to strike a record high, rising 0.5% to 18,956.83 and surpassing its previous record on November 14.

Canadian stocks rose a fourth day to reach the highest level in 17 months, as consumer stocks advanced with retail sales posting the biggest one-month gain since April.

The European basic resources index, which has now doubled from its January lows, was the best performing sector as big names Anglo American, BHP Billiton and Antofagasta jumped 4 to 5 per cent.

President-elect Donald Trump's promises of tax cuts, higher spending on infrastructure and less regulation have been seen by investors as beneficial to certain industries, including banking and healthcare.

The post US-election rally continued with Glencore (: @GLENLFDC16N-GB), BHP Billiton (London Stock Exchange: BLT-GB) andRio Tinto (London Stock Exchange: RIO-GB) all ending the trading day over 3 percent in the black.

However, traders have been presented with a slew of USA economic data, including a Commerce Department report showing a sharp jump in durable goods orders in the month of October. Britain's FTSE 100 added 0.2 percent to 6,787.48. The note yields had traded at around 1.80 percent before Trump's surprise election.

Traynor and others said a pullback in stocks could be in order soon given the recent sharp run higher. The euro climbed 0.4 to $1.0631 after touching its weakest levels since December 2015 on Friday.

Crude oil climbed in Asian trading with U.S. West Texas Intermediate (WTI) up 1 percent as the dollar pulled back and expectations of production cuts grew.

Global risk assets, led by United States stocks and the USA dollar, have led gains since Republican Donald Trump's upset election win last week. It tumbled $21.90, or 1.8 percent, to $1,189.30 an ounce.

The Shanghai Composite Index gained 0.94 per cent to 3,248.35. Brent crude, used to price global oils, shed 12 cents to $49.00 in London. Spot gold prices XAU= were last down $23.73, or 1.96 percent, at $1,188.13 an ounce. South Korea's Kospi dipped 0.1 per cent to 1,973.75 and Hong Kong's Hang Seng added 0.5 per cent to 22,459.67. The Canadian dollar strengthened against its US counterpart on Monday as slightly weaker dollar across the board and a jump in oil prices helped commodity related Canadian dollar.

Breaking with a pattern of borrowing overshoots earlier in the financial year, official figures showed public borrowing in October was 25 percent less than a year earlier at 4.8 billion pounds ($6.0 billion), its lowest since 2008 and beating all economists' forecasts.

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