Asian stocks hit record, Nikkei held back by foreclosure risk

0
57


SYDNEY (#Reuters) – #Asian stocks resumed their ascent on #Monday as investors put their hopes in vaccines to ultimately enable a global economic recovery, even though a possible tightening of virus rules in #Tokyo caused #Japanese stocks to fall. their 30-year highs.

FILE PHOTO: #Pedestrians wearing face masks are reflected on an electrical panel showing stock prices outside a brokerage house in a business district in #Tokyo, #Japan #January 30, 2020. REUTERS / #Kim #Kyung-Hoon

#After a slow start, the largest MSCI #Asia-Pacific stock index outside of #Japan rose 1.2%, hitting another all-time high.

#South #Korea climbed 2% to a record high, dominated by the chip and auto sectors, while #Chinese blue chips added 0.3%.

E-Mini futures for the S&P 500 were flat after also reaching an all-time high. EUROSTOXX 50 futures were flat, while FTSE futures were up 0.4%.

#Investors still rely on central banks to keep money cheap as coronavirus vaccines help kick-start the global economy over time, though much of that optimism is already built in and the virus continues to spread.

#Japan’s #Nikkei quickly made gains, falling 0.4% after #Prime #Minister #Yoshihide #Suga confirmed the government was considering a state of emergency for #Tokyo and three surrounding prefectures.

#Investors are cautiously watching #Georgia’s runoff election for two US #Senate seats on #Tuesday, which will determine which party controls the #Senate.

#If #Republicans win one or both, they will retain a slim majority in the chamber and may block the legislative goals of #President-elect #Joe #Biden and the presidential candidates.

“#If #Democrats won both races, #Vice #President-elect #Kamala #Harris would be the deciding vote, giving the party unified control of the #White #House and #Congress,” ABC analysts noted. “##It would increase the likelihood that a major US infrastructure spending package would be accelerated by #Congress.”

The minutes of the #Federal #Reserve’s #December meeting scheduled for #Wednesday are expected to provide more details on discussions to make their future policy directions more explicit and the possibility of a further increase in asset purchases this year.

PAY A RISK

The data schedule includes a series of manufacturing surveys around the world, which will show how the industry is coping with the spread of the coronavirus, and the closely watched ISM surveys of U.S. factories and services.

#Chinese factory activity continued to accelerate in #December, although the PMI missed expectations at 53.0.

#Japanese manufacturing stabilized for the first time in two years in #December, while #Taiwan recovered.

#Friday sees the #December US payroll report where the median forecast is for only a modest 100,000 increase.

#Analysts like #Barclays are rocking a 50,000 job cut, which would come as a shock to the market’s hopes of a rapid recovery.

“A number of inbound activity indicators point to a slowdown in momentum at the end of the year, including data on labor markets where initial demands increased during the investigation period of #December, ”said economist #Michael #Gapen in a note.

#Such a drop would add pressure on the #Fed to ease further, another burden on the dollar which is already sagging under the weight of the massive US budget and trade deficits.

The dollar index was last at 89.704, not far from its recent 2-1 / 2 year low of 89.515 after losing nearly 7% in 2020.

The euro climbed back to $ 1.2252, after experiencing profit taking late last week, when it hit its highest level since early 2018 at $ 1.2309. #It gained almost 9% in 2020.

The dollar slipped to 103.02 yen and looked in danger of testing key support at 102.55. The #British pound strengthened to $ 1.3690, levels last seen in mid-2018.

#In the cryptocurrency space, #Bitcoin has stabilized at $ 33,102, after hitting an all-time high at $ 34,800.

The lower dollar was support for gold, leaving the metal 1.3% firmer at $ 1,922 an ounce.

#Oil prices continued to rise after a few months of solid gains, with #Brent testing resistance around $ 52.50 a barrel. [O/R]

#Brent futures rose 62 cents to $ 52.49, while US crude added 59 cents to $ 49.11 a barrel.

LEAVE A REPLY

Please enter your comment!
Please enter your name here