Stocks rise as global economic picture improves

Asian shares and U.S. stock futures rose on Wednesday as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programmes accelerated.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.58%. Australian stocks gained 0.92%. Shares in China fell 0.03%. Japan’s Nikkei added 0.9%. Shares in Seoul rose by 0.79%. E-mini futures for the S&P 500 rose 0.43%. Euro Stoxx 50 futures rose 0.53%, German DAX futures gained 0.41%, and FTSE futures rose 0.38%, pointing to a bright start to European trading.

Wall Street rallied on Tuesday on renewed hopes for U.S. President Joe Biden’s proposed $1.9 trillion COVID-19 aid bill as the Senate took steps to allow Democrats to pass Biden’s package without Republican support. The U.S. Treasury yield curve continued to steepen in Asian trading, reflecting expectations for more fiscal spending and growing economic optimism. The roll-out of vaccines in many countries is gathering pace, earnings season in the United States and Japan has so far been favourable, and oil prices are at their highest in a year, which are all positive signs for the global economy.

Russian authorities said they would be able to vaccinate about 700 million people this year with the Sputnik V coronavirus vaccine. Nations including India and Mexico are in talks to ink emergency deals to start administering the vaccine. In the United States, the Biden administration said it would increase the weekly supply of shots nationwide and start shipping coronavirus vaccines directly to retail pharmacies in addition to ongoing deliveries to states.

Stocks rise as global economic picture improves, Reuters, Feb 3