27 April 2017

Asian shares eased from a near two-year high on Thursday as a long-awaited U.S. tax cut plan failed to inspire investors, though sentiment remained supported by global growth prospects and receding worries about political risks in Europe.MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.4 percent after hitting its highest level since June 2015 on Wednesday.

U.S. President Donald Trump proposed slashing tax rates for businesses to 15 percent from the current 35 percent for public corporations and 39.6 percent for small businesses, and on overseas corporate profits returned to the country.

Two Saudi banks soared on Wednesday after saying they were in initial stages of a merger, helping lift the mood in other lenders while first quarter financial results buoyed the shares of two blue chips in other Gulf countries.

On Wednesday Saudi's Alawwal Bank agreed to start talks with Saudi British Bank (SABB) about a tie-up that could create the kingdom's third biggest bank with assets of nearly $80 billion.

Oil prices dipped on Thursday, weighed down by a general sentiment of globally bloated markets.

The dollar held gains against the yen on Thursday after U.S. President Donald Trump's tax plan offered no fresh surprises, slowing the greenback's rally, while the market awaited the European Central Bank's upcoming monetary policy decision.

Gold on Thursday edged away from two-week lows hit in the previous session on scepticism over President Trump's proposed U.S. tax reform, with markets awaiting central bank meetings in Europe and Japan.

In the latest news, Turkey's central bank said on Wednesday it will keep monetary policy tight until the inflation outlook displays a significant improvement, after consumer prices surged to an 8-1/2 year high last month.

The Bank of Japan kept monetary policy steady on Thursday and offered a more upbeat view of the economy than last month, signaling its confidence that a pick-up in overseas demand will help sustain an export-driven recovery.

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