Stocks edge higher; India shares surge on tax cut: Markets wrap

Shares pushed higher in Shanghai, were flat in Hong Kong in Tokyo and climbed in Sydney amid rising expectations of another interest-rate cut.

Asian stocks saw modest gains on reduced volumes after a lackluster U.S. session. Indian equities and the rupee surged after the country cut its corporate tax rate.

Indian equities and the rupee surged after the country cut its corporate tax rate. (AFP File Photo)

Shares pushed higher in Shanghai, were flat in Hong Kong in Tokyo and climbed in Sydney amid rising expectations of another interest-rate cut. India’s Sensex gauge soared on a surprise reduction in local business taxes. U.S. and European futures were little changed. Oil prices resumed gains and 10-year U.S. Treasuries held their advance. China’s yuan rose as traders took in the central bank’s modest cut to a reference rate for bank loans.

Japanese bonds fell after the central bank trimmed its debt purchases in a regular operation, though later recouped losses. That came a day after Bank of Japan Governor Haruhiko Kuroda said he’d like to see a steeper yield curve.

After a slew of monetary policy decisions this week, investors may now shift their focus to the outlook for negotiations between the U.S. and China as trade deputies from both nations are set to meet. Concerns remain about the state of the global economy, with the OECD lowering its world growth forecast to 2.9% from 3.2% as intensifying trade conflicts take a toll on confidence.

“Stocks can continue to rise because they are supported by solid and pretty sturdy fundamentals, but there will be a lot more volatility along the way,” Kate Warne, investment strategist at Edward Jones, told Bloomberg TV. “There’s a lot more monetary stimulus coming into the system,” she said.