Market Review By TraderXP:
Oil rose in New York, heading for the highest close in three months, after the U.S. Congress adopted the Senate approved the deal, which will avoid tax increases and spending cuts that threatened the growth in the world's largest economy.
"Now that the deal is not a surprise that oil is trading higher," said Michael McCarthy, chief strategist at CMC Markets in Sydney, who predicts West Texas Intermediate could reach $ 100 a barrel this month. "We clearly see a modest expansion of production in China. This speaks directly to the global demand for oil."
Market News
Asia stocks at five-month high in the U.S. financial crisis is over rocks
Asian stocks hit a five-month high against the dollar has fallen in the last minute deal over the U.S. "financial cliff" a crisis that threatens the U.S. recession and roiled financial markets.
The U.S. Congress approved the expansion of the lower Bush-era tax rates for all but the nation's wealthiest households in the budget deal, which automatically stops the implementation of $ 600 billion in spending cuts and tax increases.
Passage of the bill in Congress eased earlier concerns about the number of complaints from Republicans that spending cuts have not yet been adequately.
Temporary reprieve, the deal offers the U.S. economy also sets Wall Street for a strong start trading, which resumed on the same day.
Asian stock markets welcomed the event as a major risk for investors, namely the fall in global growth, was havereceded at the moment.
MSCI Asia Pacific excluding Japan Index of shares jumped 1.8 percent. Chinese shares in Hong Kong jumped 3 percent as the rally last month resulted in the new year.
"If the fog is caused by the financial cliff disappears, it will probably be moving to risk putting back," said Satoshi Okagawa, senior global markets analyst Sumitomo Mitsui Banking Corporation in Singapore.
In South Korea, where data showed manufacturing activity grew for the first time in seven months in December, the KOSPI index rose 1.6 percent, while Australian shares rose to their highest level in 19 months.
Asian stocks outside Japan rose by nearly 20 percent last year, as a combination of improving economic data from China, the weakening of the euro zone worriesabout blowing and a global central bank, which contributed to the weakening of investors back into the stock markets.
Shiva Shakti, Asia strategist at Credit Suisse, said in a note to clients that 2013 may see similar income for Asian stocks, given the solution to a financial crisis.
"As we move into 2013, we maintain our bullish bias, and our theme is that markets may become equal to the revenues," Shiva said, adding that China and India can offer the most up, given the discrepancy between the index and the level of earnings expectations .
OIL, EURO UP
Risk assets universally received a lift from crude oil futures were up 0.9 percent, while copper futures in London, jumping 1.7 percent.
The euro rose to $ 1.3261 against the U.S. dollar.
-Haven U.S. dollar edged lower, falling 0.4 percent against a basket of major currencies.
Australian dollar, the currency that is for the good, when optimism about the outlook for global economic growth, rose to $ 1.0470.
The Japanese yen continued to slide as investors set by the Bank of Japan will have to take more aggressive easing measures to support the economy and to meet the new government.
The yen fell to 87.17 against the dollar to its weakest level since July 2010.
The Japanese currency also fell to depths not seen in over four years against the Australian and New Zealand dollars. Reuters.com
Currencies
Yen down as USavoids "financial cliff"
The yen reached its lowest level since July 2011 against the euro on Wednesday as U.S. lawmakers passed a bill to avoid a "financial cliff", strengthening investor appetite for risky assets.
The U.S. Congress approved a tax increase rare Tuesday that hit the rich households in the country in a bipartisan budget deal that stops the world's largest economy from falling into a deep recession and fiscalcrisis.
The euro rose to a height of 115.995 yen tradingplatform EBS, its highest level against the Japanese currency since July 2011. After trimming some of its gains, the euro was up around 1.1 percent for the day at 115.65 yen.
Slide the yen began in early Asian trading on Wednesday as it became increasingly likely that the U.S. "financial cliff" steep tax increases and spending cuts could have been avoided.
"The market is basically in a risk-on mode with Asian stocks are doing great, the euro and the yen falling buying across the board," said a trader at a Japanese bank in Singapore.
The yen fell broadly, helping to lift the dollar higher than 87.30 yen, the highest level of the dollar against the Japanese currency since July 2010.
Improving investor risk appetite added topressure against the Japanese currency, which was chased out that the new Japanese government led by Prime Minister Shinzo Abe to push the Bank of Japan for more drastic easing of monetary defeat deflation.
Safe haven dollar fell broadly, with the growth of the euro by 0.5 percent to $ 1.3266, while the Australian dollar climbing 0.6 percent to $ 1.0461. Reuters.com
