These are some of the key events investors will be watching this week 

Asia-Pacific stocks kicked off the penultimate week of the year on a positive note after a Republican agreement on the shape of U.S. tax cuts aimed at boosting growth in the world’s largest economy.

Equity benchmarks in Tokyo, Hong Kong and Sydney climbed after the S&P 500 Index and other American gauges closed at records on Friday. Mid-week votes in the House and Senate are planned on the legislation that will reduce corporate and individual tax rates. Lawmakers are aiming for the bill to land on President Donald Trump’s desk for a signature before Christmas.

“The odds of the tax cut legislation getting passed within this year have grown,” said Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute Co. This “will benefit not only the U.S., but also economies around the globe including Japan, allowing investors to anticipate an increase in corporate earnings.”

India’s S&P BSE Sensex Index fell as much as 2.6 percent after counting got underway in a state election, before reversing its losses. Indian Prime Minister Narendra Modi’s party is set to return to power in his home state of Gujarat, an election that’s considered a bellwether before the national vote in early 2019.

U.S. Treasury and Australian government bond yields advanced, though the dollar was getting little lift after it trod water last week. Oil is trading above $57 a barrel. In emerging markets, South Africa’s rand fluctuated ahead of the ruling party’s leadership vote, now scheduled for Monday. Chile’s peso may gain after a business-friendly candidate won the country’s presidential election.

Elsewhere, bitcoin traded at around $19,000 as futures trading debuted on the CME Group Inc.’s venue, the world’s biggest exchange, giving the cryptocurrency further cachet and access to mainstream investors.

Among the key events investors will be watching this week:

• President Donald Trump delivers a national-security speech Monday, when he will call out China for engaging in “economic aggression,” the Financial Times says.
• South Africa’s ruling party delayed its leadership vote to Monday.
• The U.S. and U.K. publish updated estimates of third-quarter GDP
• The Bank of Japan meets to set monetary policy.
• The Czech Republic, Hungary, Taiwan and Thailand also set interest rates this week.
• Nike Inc., FedEx Corp., CarMax Inc., Bed Bath & Beyond, drugstore operator Rite Aid Corp. and Micron Technology Inc. are among companies scheduled to announce earnings.

And these are the main moves in markets:

Stocks

• Japan’s Topix index closed up 1.4 percent, with the Nikkei 225 Stock Average up 1.6 percent.
• Hong Kong’s Hang Seng Index advanced 0.5 percent, while the Shanghai Composite Index was down 0.2 percent.
• Australia’s S&P/ASX 200 Index rose 0.7 percent.
• India’s Nifty 50 Index and S&P BSE Sensex Index both climbed 0.8 percent.
• Futures on the S&P 500 Index were up 0.2 percent after the underlying gauge climbed 0.9 percent on Friday to 2675.81.

Currencies

• The yen was little changed at 112.64 per dollar.
• The Bloomberg Dollar Spot Index was down 0.1.
• The euro was trading at $1.1762.
• The British pound was at $1.3342 after slumping 0.8 percent Friday.
• The rand was little changed after fluctuating between a gain of 1.5 percent and a drop of the same magnitude against the dollar in early trading Monday.
• The Indian rupee fell 0.2 percent.

Bonds

• The yield on 10-year Treasuries rose one basis point, to 2.36 percent.
• Yields on 10-year Australian government bonds were little changed at 2.53 percent.

Commodities

• West Texas Intermediate crude was up 0.6 percent at $57.64 a barrel.
• Gold was little changed at $1,253.60 an ounce.

Source: Bloomberg – Asia Stocks Gain on Tax Plan, India Shares Rebound: Markets Wrap

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