Most Asian stock market indices were trading higher on Monday (9 January), with the Shanghai Composite up 0.48% at 3,169.38 as of 5.25am GMT, helped by a strong Wall Street finish last week with the Dow Jones closing just below the 20,000 mark.
US stocks ended at record highs on Friday amid optimism over US President-elect Donald Trump's plans to lower taxes and increase infrastructure spending leading many to believe that the world's biggest economy would get a boost.
However, investors are said to be concerned over a strong US dollar and are awaiting Trump's news conference scheduled for Wednesday. The stronger greenback is said to have a negative effect on some Asian stock markets such as Hong Kong. The news conference is expected to provide Trump's views on global trade relationships with China and future policy indications. Analysts said that even a slight disappointment from Trump on policies could trigger a sell-off in global equity markets.
"The dollar's rising strength will be a growing concern for Asian markets, particularly Hong Kong and investors will be waiting for Trump's comments to get some clues on what areas the new administration will focus on," Alex Wong, portfolio manager at Hong Kong-based Ample Capital, was quoted as saying by Reuters.
Indices in the region were trading as follows at 5.40am GMT:
|Hong Kong||Hang Seng Index||22,540.54||Up||0.17%|
On 6 January, the FTSE 100 Index closed 0.20% higher at 7,210.05, while the S&P 500 Index closed 0.35% higher at 2,276.98.
Among commodities, oil prices declined amid a stronger US dollar and doubts that oil producers would not stick to their output cut promises. As of 12.31am EST, WTI Crude oil was trading 0.56% lower at $53.69 (£44.02) a barrel, while Brent crude was trading 0.47% lower at $56.83 a barrel.