Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.98 percent while Japan's Nikkei index closed down 0.43 percent.
ASIA-PACIFIC stock markets continued this week’s gains early Thursday, helped by an overnight rally in the U.S. and fresh 3 ½-year highs for oil.
Malaysia’s markets remained closed Thursday after the ruling coalition suffered a shock loss in Wednesday’s election. Forward markets are pricing in a 2% drop for the ringgit and 3% slide for equities, said Capital Economics.
The iShares Malaysia ETF slumped 6% in New York on Wednesday, its biggest one-day drop since S&P’s downgrade of the U.S. in August 2011 sent global tremors through markets. Equities had been weakening in Malaysia ahead of the election as the opposition was seen having gained momentum.
Analysts said early Thursday that the new government, led to victory by 92-year-old former prime minister Mahathir Mohamad, could enact policies with far-reaching consequences for Malaysia’s economy, including accelerated government spending and possibly scrapping the country’s goods-and-services tax.
But Capital Economics said the win opens up the possibility that Malaysia will start to tackle some of its institutional problems, including the scandal surrounding state investment fund 1MDB.
In neighboring Singapore, the Straits Times Index was off 0.1% as the only Asia-Pacific benchmark down in early action.
There were wide gains of about 0.5% elsewhere—helped by the advances in the U.S. and in oil markets—that should persist in Asia trading Thursday, said Woon Tian Yong, an analyst at Informa Global Markets.
In New Zealand, the main stock index Thursday entered record territory after setting a closing best Wednesday, while Australia’s benchmark neared a 10-year intraday high.
Oil futures have risen more than 0.5% in Asian trading, following a 3% jump Wednesday after President Donald Trump announced the U.S. would reimpose sanctions on Iran. - Wall Street Journal
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