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Asian stocks, commodities, trade gains, economic recovery

TOKYO / NEW YORK (Reuters) – Asian stocks rallied on Wednesday following a Wall Street rise as expectations the vaccine will eventually win the battle with the coronavirus, raising hopes for a rebound as supply. The tightening of oil prices has skyrocketed to their highest levels in a year.

FILE PHOTO: A currency trader walks past an electronic board at a bank’s trading room in Seoul, South Korea, November 5, 2020.REUTERS / Kim Hong / File Photo


7;s broadest index of Asia-Pacific stocks outside Japan was up 0.61 percent, while Japan’s Nikkei 225 gained 1.12 percent.

Chinese shares were up 0.07 percent, while South Korea’s KOSPI gained 1.05 percent. Australia’s S & P / ASX 200 reversed a loss and added 0.18 percent.

U.S. futures shares were up 0.18 percent.

Treas centuries expanded their rally by pulling the 10-year yield from the benchmark, far from the nearly one-year high and flattening the yield curve slightly.

Euro Stoxx 50 futures were down 0.03%, German DAX futures were up 0.03% and Britain’s FTSE futures were up 0.18%, suggesting a lower European trade start. down

Investors are betting that the incoming Biden administration will boost U.S. coronavirus distribution and spend big on more stimulus, which will contribute to the global economic recovery and growing demand for commodities.

Hugh Young, head of Asia Pacific at Aberdeen Standard Investments, said he expects investor interest in Asia in the second half of 2020 to remain this year.

“The eternal question is overestimation. The Asian market is doing well which is disappointing. But of course the quality is in Asia, the momentum is in Asia, so it looks like a solid and positive year for Asia, ”Young said in the discussion. Reuters next meeting

On Wall Street, stocks fluctuated near unchanged recently, not far from their record highs. The Dow was up 0.19%, the S&P 500 was up 0.04%, and the Nasdaq Composite added 0.28%.

The United States’ West Texas Intermediate (WTI) rose 1.13 percent to $ 53.81 a barrel, hitting its highest since February 2008. Wed after US crude oil stocks fell more than expected. Brent crude rose 1.27 percent to $ 57.30. [API/S]

Oil prices also gained a boost after Saudi Arabia said it planned to cut production by another 1 million bpd in February and March.

Some investors have been monitoring developments in Washington after at least three Republicans said they would join Democrats in a vote expected Wednesday to impeach the president. Nathibodi Donald Trump on the turmoil in the US agency

With seven days left in office, Trump faces prosecution over allegations he incited a riot in addressing his followers last week before hundreds of them broke into. In the city hall, five people were killed, Trump said his words were appropriate.

The impeachment hearing can be conducted even if Trump retires on Jan. 20, but analysts say they do not expect political turmoil in Washington to affect markets.

“The market since the election has been strong as uncertainty has been removed,” said Peter Essele, head of portfolio management at Boston-based Commonwealth Financial Network.

The yield on 10-year U.S. government debt slipped to 1.1240 percent on Wednesday, down from a one-year high of 1.1870 percent earlier after the auction of the new 10-year note. Well received

The yield curve, the highest since May 2017 on expectations for a major fiscal stimulus under the new democratic administration, fell marginally to 97.5.

The dollar fell on Wednesday as U.S. yields slowed from the latest recovery.

Against the yen, the dollar fell 0.12% to 103.65. The dollar also fell to $ 1.3683 against the British pound.

Safe gold rose 0.2 percent to $ 1,860.13 an ounce.

Reporting by Stanley White in Tokyo and Chibuike Oguh in New York Editing by Sam Holmes, Ana Nicolaci da Costa and Kim Coghill.

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