TOKYO / NEW YORK (Reuters) – Asia stocks advanced on Tuesday as prospects for a deal by European Union leaders to jointly finance the recovery of their economies and hopes of a coronavirus vaccine lifted appetite. risky.
FILE PHOTO: People wearing protective face masks, after an outbreak of coronavirus disease (COVID-19), look at a stock quote board outside a brokerage in Tokyo, Japan, March 10, 2020. REUTERS / Stoyan Nenov
Japan’s Nikkei was up 0.6%, while MSCI’s broader Asia-Pacific stock index outside of Japan rose 1.5% to near its four-month peak earlier this month.
On Wall Street, tech stocks jumped after several days of downtime, pushing the Nasdaq Composite up 2.51% to a record high on Monday. The S & P500 also peaked at five months.
Euro Stoxx 50 futures gained 0.25% in Asian trading to settle near their highest level since early March.
European Union leaders seemed close to agreeing on a massive stimulus plan for their coronavirus-ruined economies, and EU Council President Charles Michel expressed confidence
to reach an agreement on the recovery fund of 750 billion euros.
“Now they are discussing a compromise on how the fund will be distributed between grants and loans. The question is no longer whether we will have a fund or not, ”said Nobuhiko Kuramochi, market strategist at Mizuho Securities.
“The United States is likely to adopt the stimulus for the first week of August. We don’t know its exact size, but I bet it will be between $ 1 and $ 1.5 billion. ”
Advisers to President Donald Trump and Democrats in Congress were to discuss next steps to respond to the coronavirus crisis on Tuesday.
Although coronavirus infections have increased in recent weeks in the south and west of the country, investors hope that another economic package, which will come after a $ 3 trillion stimulus earlier this year, will help the economy get dizzy. during a difficult period.
Hopes that COVID-19 vaccines could be ready by the end of the year also backed the risk assets, after promising first data from trials of three potential vaccines.
However, the positive mood faces more reality checks later this month as the earnings season will be in full swing in many countries in the coming weeks.
“If companies provide guidance that is stronger than market expectations, that will be positive for stocks. But is that really possible in today’s uncertain environment? Said Tatsushi Maeno, senior strategist at Okasan Asset Management.
“I think we should be cautious with the stock markets in the short term.”
In the foreign exchange market, the Chinese yuan advanced to its strongest level since early March, helped by recent signs of recovery in the Chinese economy. The yuan on land rose to 6.9804 per dollar.
The euro stood near Monday’s four-month high of $ 1,14675 as traders watched the end result of the EU marathon summit that began on Friday. His last quote was $ 1.1459.
The yen moved slightly to 107.19 per dollar.
Gold held steady at $ 1,818 an ounce, after hitting a nine-year high of $ 1,820.4 on Monday.
The metal retains its strength as a store of ultimate value, as central banks around the world have committed to an unprecedented level of money printing to shore up pandemic-affected economies.
Brent crude rose 0.1% to $ 43.35 per barrel, while West Texas Intermediate (WTI) held steady at $ 40.94.
Editing by Jacqueline Wong
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