Shares climb on China’s economic recovery, with earnings in focus
January 19, 2021 @ 11:25 +03:00
Asian shares climbed on Tuesday as investors wagered China’s economic strength would help underpin growth in the region, even as pandemic lockdowns threatened to lengthen the road to recovery in the West. Data out on Monday had confirmed the world’s second-largest economy was one of the few to grow over 2020 and actually picked up speed as the year closed. European markets appeared set for a higher open with Euro Stoxx 50 futures up 0.5% and London’s FTSE gaining 0.4%. Those of Germany’s DAX rose 0.64%.
MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 1.61%, to be a whisker from record highs. Japan’s Nikkei bounced 1.53%, recovering all the losses suffered on Monday when caution had dominated markets. Australian shares climbed 1.19% as investors bet on news that Queensland state was set to lift virus-led restrictions and on prospects of better production numbers from local miners. Chinese blue-chips dipped 1.47%, while Hong Kong’s Hang Seng advanced 2.1%, helped by steady and robust demand from investors in mainland China for shares in the Asian financial hub.
Mainland investors purchased 18.9 billion yuan ($2.91 billion) worth of Hong Kong stocks on Tuesday via the Stock Connect linking mainland and Hong Kong, after spending a record HK$23 billion on Monday, according to HKEX and Refinitiv data. On Wall Street, U.S. stocks also looked a little steadier as futures for the S&P 500 added 0.67% and NASDAQ futures 0.97%. Analysts at JPMorgan felt the coming earnings season could brighten the mood given the consensus in Europe was for a fall of 25% year-on-year, setting a very low bar.
The Canadian dollar eased to $1.2729 on reports Biden would cancel a permit for the Keystone XL pipeline as one of his first acts in office. Gold steadied at $1,838 an ounce after briefly reaching a six-week low of $1,809.90 overnight. Global demand concerns kept oil prices in check. U.S. crude fell 0.19% to $52.26 a barrel, while Brent crude futures rose 0.44% to $54.99 a barrel.
Shares climb on China’s economic recovery, with earnings in focus, Reuters, Jan 19