Published: Fri, March 03, 2017
Science | By Boyd Webster

Asian Shares Advance After Dow Closes Above 21000

Asian Shares Advance After Dow Closes Above 21000

USA stock-market indexes opened slightly lower Tuesday as investors remained cautious ahead of President Donald Trump's address to a joint session of Congress. Wednesday's gain was the biggest for the blue-chip index so far this year.

Several energy companies fell along with the price of natural gas.

Bond prices fell. The 10-year Treasury yield rose to 2.39 percent from 2.37 percent late Monday.

Investors were looking ahead to an evening speech by President Donald Trump to Congress in hopes of gleaning more details on the timing of tax cuts and other policies.

"By bringing Congress on side, Trump's plans to "restart the engine" of the U.S. are a lot more likely to become policy".

The Dow spiked more than 300 points (1.5 percent) by 1 p.m. ET, peaking at 21,141 points at 12:30 p.m. However, it is the Nasdaq that outperformed the rest with 5.13 percent gain in February until the closing of February.

Trump was scheduled to deliver his first speech to a joint session of Congress Tuesday evening. Data showed USA manufacturing expanded last month at the fastest pace in three years, while German inflation accelerated above 2 percent for the first time since 2012, adding to signs of momentum in Europe's largest economy.

Ahead of his address, Trump on Monday met U.S. state governors at the White House and said he sees "big" infrastructure spending and that he is seeking a "historic" increase in military spending of more than 9%.

The stock market's steady advance slowed over the past week as investors began to demand more clarity on Trump's economic policies. JPMorgan Chase climbed $2.69, or 3 percent, to $93.31.

THE QUOTE: "President Trump's address will undoubtedly create short term volatility this morning in most markets".

ETrade Financial fell 7.2 percent, while Charles Schwab gave up 3.2 percent. On the Big Board, decliners outpaced advancers by 1.8-to-1, and on the Nasdaq, decliners led by 3.5-to-1.

Also, stronger-than-expected manufacturing data improved the sentiment.

ASIA'S DAY: Japan's benchmark Nikkei 225 gained 1.4 percent to finish at 19,393.54. Singapore's Straits Times index was up 0.1 percent and the Taiwan Weighted gained 0.2 percent while India's Sensex was marginally higher after hitting a 52-week higher earlier in the session. China's Shanghai Composite and South Korea's Kospi also managed gains, adding 0.4% and 0.3%, respectively.

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