Asian shares rose on Tuesday, with Japanese stocks hitting a 30-year high, as investor risk was encouraged by a Brexit trade deal and hopes a long-awaited U.S. pandemic relief package will be expanded.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.45%. Australian stocks ended up 0.53%. Japan’s Nikkei surged by 2.4% to its highest since August 1990. Shares in China bucked the trend, falling 0.32% on profit taking. Futures for the S&P 500 added 0.4%.
Euro Stoxx 50 futures were up 0.42%, German DAX futures rose 0.53%, and FTSE futures gained 1.12%, pointing to a bright start to European trade. The dollar nursed losses against major currencies and Treasury yields rose after U.S. President Donald Trump’s approval of a $2.3 trillion stimulus package to counter the effects of the coronavirus pandemic.
While the package still has to pass the Senate, Trump’s approval on Sunday sent shares on Wall Street to record highs on Monday amid increased optimism about an economic recovery.
Shorting the dollar has been a popular trade recently and calculations by Reuters based on data released by the Commodity Futures Trading Commission on Monday suggested that trend could endure. Short positions on the dollar swelled in the week ended Dec. 21 to $26.6 billion, the highest in three months. The dollar index against a basket of six major currencies fell to 90.137, not far from the lowest in more than two years. Sterling edged up to $1.3483 following the confirmation last week of a trade UK-EU trade deal that was widely expected. A sluggish dollar bolstered gold prices, which rose 0.33% to $1,877.56 an ounce.
Jack Ma’s Alibaba Group Holding Ltd rose 6.4%, snapping six straight sessions of declines. Analysts said those gains could be shortlived given Chinese regulators have called for a shakeup of Ant Group, Alibaba’s mobile payment and consumer finance arm.
More U.S. fiscal stimulus has also eased concerns about the threat posed by new variants of the coronavirus identified in Britain and South Africa.
The yield on benchmark 10-year Treasury notes rose to 0.9381%, but the two-year eased to 0.1270%.
Japan stocks lead Asian shares higher as U.S. stimulus fuels rally, Reuters, Dec 29
- Nasdaq 100 reversed from strong support level 21000.00 - Likely to rise to resistance…
- USDJPY reversed from key support level 156.35 - Likely to rise to resistance level…
The recent declines in US indices may have broken the bullish trend, indicated by technical…
The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…
Bitcoin finds support near the 50-day moving average, but further declines in the stock market…
- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…
This website uses cookies