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TOKYO: Asian stocks rose on Tuesday (November 24) after US President Donald Trump said he was no longer opposed to government aid for Joe Biden’s transition team, and markets also shrank. They were fueled by the news about the COVID-19 vaccine.
The upbeat outlook helped MSCI’s broader Asia-Pacific equity index outside of Japan gain 0.15%.
Japan’s Nikkei was up 2.48 percent, hitting a 29-year high, while Seoul’s KOSPI was 0.74 percent higher.
Tokyo markets were closed on Monday for a national holiday, so Tuesday’s surge was expected in part after Monday’s positive vaccine news and increases in other exchanges around the world.
Australia’s S & P / ASX 200 was 1.1% stronger, hitting its highest level in nearly nine months, with energy stocks leading the way.
However, Chinese leading companies and Hong Kong’s Hang Seng were outliers, falling 0.75% and 0.08%, respectively.
“The power vacuum in Washington appears to be taking less life out of markets after the General Services Administration (GSA) gave Biden the go-ahead as the apparent winner of the US election,” said Stephen Innes, chief market strategist. Global Axi. in a note.
Shortly before the opening bell in Tokyo, Trump tweeted that the GSA should begin releasing federal funds and resources to initiate a transition, ending a great deal of uncertainty, although Trump has yet to admit defeat in the election.
“However, in the best interest of our country, I recommend that (GSA administrator) Emily (Murphy) and her team do whatever is necessary regarding the initial protocols, and they have told my team to do the same. “Trump said. tweeted.
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The Tokyo market was already preparing for a strong open, as it was back in action after a three-day weekend, during which international markets surged on positive news about vaccines.
International investors have applauded the news that British pharmaceutical group AstraZeneca and the University of Oxford will seek regulatory approval for their coronavirus vaccine, following similar announcements about the Pfizer-BioNTech and Moderna vaccines.
Oil prices rose in the Asian morning trade, capitalizing on healthy gains the day before on positive vaccine news.
US crude rose 0.14 percent to $ 43.12 a barrel and Brent stood at $ 46.10, up 0.09 percent on Tuesday, as a commodity price index hit its low. highest level since early March.
The yield on the 10-year benchmark notes rose slightly to 0.8684 percent.
Spot gold fell to $ 1,827.01 an ounce, while US gold futures fell 0.46 percent to $ 1,829.30 an ounce.
Tokyo players also welcomed the rally in the US dollar.
Okasan Online Securities said in a note to clients: “The Tokyo market is likely to see a technical rally as investors were expected to cheer on the gains in US stocks as well as the depreciation of the yen (against the dollar) around level 104. “
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Overnight, the Dow Jones Industrial Average gained 1.1 percent to close at 29,591.27.
The broad-based S&P 500 advanced 0.6 percent to 3,577.59, while the technology-rich Nasdaq Composite Index added 0.2 percent to close at 11,880.63.
Players in Tokyo will be on the lookout for a two-day visit to Japan by Chinese Foreign Minister Wang Yi as the two Asian giants carry out delicate diplomatic exchanges.
Japan and China recently signed a major Asia-wide free trade agreement called RCEP, which boosts China’s economic clout. But their relations are heavily influenced by tensions between China and the United States.
In the early Tokyo operations, exporters benefited from the yen’s decline, including the auto sector.
Toyota was up 1.92 percent to 7,493 yen, Nissan added 2.61 percent to 498.5 yen and Honda was up 3.02 percent at 3,067 yen.
Sony added 2.04 percent to reach 9,423 yen while Panasonic rose 2.4 percent to 1,109.5 yen.
Construction equipment maker Komatsu, which is benefiting hugely from Chinese demand, was up 2.62 percent to 2,584.5 yen.
SoftBank Group was up 1.48 percent to 6,849 yen.
Japan Airlines was up 2.56 percent to 1,965 yen, while rival ANA Holdings fell 3.93 percent to 2,432.5 yen.
