Shares of Japan surged in Asian stocks on the back of a bullish U.S. rally

TOKYO / NEW YORK (Reuters) – Asian stocks rose on Tuesday, hitting a 30-year high in Japan as Brexit trade deals boosted investor risk and boosted the long-awaited US epidemic relief package.

File photo: A man wearing a protective face mask walks in front of a stock quotation board outside a brokerage in Tokyo, Japan on March 10, 2020, after an outbreak of coronavirus disease (COVID-19).

MSCI’s broad index of Asia-Pacific shares rose 0.45% outside Japan. Australian stocks ended 0.53% higher. Japan’s Nikkei rose 2.4% to its highest level since August 1990. Shares in China rose, falling 0.32% on gains.

S&P 500 futures added 0.4%.

Eurostocks 50 futures rose 0.42%, German DX futures rose 0.53% and FTSE futures rose 1.12%, signaling a bright start to European trading.

Losses to the dollar and nurses against major currencies and treasury yields have increased since US President Donald Trump approved a $ 2.3 trillion stimulus package to combat the effects of the coronavirus epidemic.

While the package is yet to pass the Senate, Trump’s approval on Sunday sent shares on Wall Street to a record high on Monday amid heightened optimism about economic recovery.

“Brexit … and the U.S. stimulus deal is now a relief in the rearview mirror that we have avoided the worst-case scenario,” said Stephen Ines, Axis’ chief global market strategist. Broker.

Britain struck a narrow Brexit trade deal with the EU on Thursday, just seven days before it pulled out of the world’s largest trading bloc.

Strong demand for risky assets has held the US dollar higher, often seen on the back foot as a “safe-haven” asset. It was down 0.02% against the basket of major currencies.

The shortening of the dollar is a popular trade, and calculations by Reuters based on data released by the Commodity Futures Trading Commission on Monday indicate that the trend could last. In the week ended December 21, the dollar’s short-term position stood at 26 26.6 billion, the highest in three months.

Against a basket of six major currencies, the dollar index fell to 90.137, the lowest level in more than two years.

Sterling rose to 3 1.3483 after broadly expected UK-EU trade deals were confirmed last week.

Gold prices rose 0.33% to 8 1,877.56 an ounce in the sluggish dollar.

Jack Mani Alibaba Group Holding Ltd. straight. rose% has been broken in the study of six straight sessions. Analysts said the benefits could be curtailed if Chinese regulators called for the removal of Ant Group, Alibaba’s mobile payments and consumer finance arm.

Analysts also expressed concern that other large Chinese tech companies could face further government scrutiny, which could curb investments in the sector.

Amid fresh COVID-19 travel bans around the world, oil prices recovered overnight due to concerns over rising supply and low demand.

Brent crude rose 0.45% to .051.09 a barrel. US crude was up 0.48% at .8 47.85 a barrel.

U.S. No further financial stimulus has also eased concerns about the risks posed by new types of coronaviruses known in Britain and South Africa.

Production on the benchmark 10-year Treasury notes rose 0.9381%, but declined to 0.1270% in two years.

Reported by Stanley White and Koh Gui King; Edited by Sam Holmes, Stephen Coates and Jane Verdale