AFP, HONG KONG: Asian traders continued their blistering start to the year yesterday with most markets rising but Hong Kong’s record rally came to an end, while the euro extended gains against the dollar.

Wall Street once again provided a strong lead on the back of optimism about corporate earnings in light of Donald Trump’s tax cuts as well as the improving global economic outlook.

Hong Kong started the day on a high—pushing on with a run of gains into a 15th day and heading for its all-time high—but profit-taking eventually caught up with it and the benchmark index closed down 0.2 per cent.

The Hang Seng Index climbed more than seven per cent in its run, supported by a surge in mainland investors attracted by relatively cheaper valuations compared with Shanghai and Shenzhen.

Despite the loss, Alex Wong, director of asset management at Ample Capital in Hong Kong, told Bloomberg News it was “very likely” the HSI would at some point break its record high of 31,958.41 hit in October 2007.

“You can’t stand against this kind of strong trend,” he said. “The sentiment is too strong and people are losing patience right now waiting for dips. They would rather just chase it.”

Among other markets Tokyo ended 0.3 per cent higher despite a stronger yen, with market heavyweight Softbank more than three per cent higher on reports it could list its mobile unit and raise up to $18 billion in one of Japan’s biggest public offerings.

Sydney gained 0.1 per cent, while Seoul and Singapore were each up 0.3 per cent. Taipei, Bangkok and Manila were all higher though Wellington dipped slightly.

Shanghai slipped 0.5 per cent after an 11-day winning streak that saw the benchmark index tack on more than four per cent.

Jakarta was down 0.1 per cent in the afternoon, despite a floor collapsing in the lobby of the building where it is based, injuring a number of people. Local TV stations earlier reported that trade had been suspended for an hour but stock exchange spokesman Rheza Andhika said trade continued as usual in the afternoon.

In early European trade London, Paris and Frankfurt were all flat.

“Investors continue basking in the afterglow of US tax reform assuming there will be no end to this unstoppable run, which is now feeding off US domestic economic strength and a stronger global growth narrative,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

“As we enter earnings season, the ‘fear of missing out’ mindset takes hold, but if the markets remain at this pace, we could breach my 2018 year-end global stock market forecast before the end of February, which will for once leave me honestly lost for words.”

The euro added to its gains against the dollar after hitting a three-year high Friday on the back of news that Chancellor Angela Merkel’s CDU/CSU party was close to a deal with the Social Democrats—Germany’s second biggest party—to form a new coalition.