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Stocks in Asia were due to continue their gains on Thursday, boosted again by continued global stimulus efforts and hopes for a coronavirus vaccine.
FILE PHOTO: A man wearing a protective mask walks past a stock trading board outside a brokerage, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, on November 2, 2020 REUTERS / Issei Kato
TOKYO / BOSTON: Asian stocks rose to a more than two-year high on Thursday, fueled by sustained global stimulus efforts and hopes for a coronavirus vaccine, but some analysts warned of the risk of a downward correction. .
MSCI’s broader Asia-Pacific equity index outside of Japan rose 0.44%, approaching the highest since January 2018. Chinese stocks rose 0.37%. Japan’s shares rose 0.62% to a 29-year high.
Australian stocks bucked the regional trend and fell 0.31% as a drop in copper prices hit mining stocks. S&P 500 stock futures fell 0.15%.
Oil futures rose to two-month highs on optimism about a vaccine and a larger-than-expected drop in US crude inventories.
The gains in Asia came after a mixed performance for US stocks as investors turned back to tech stocks and turned away from economically sensitive sectors as they weigh the progress of the COVID-19 vaccine and the likely timing of a rally. economic.
“Markets are waiting for more news on the virus, so it is difficult for investors to sell stocks short,” said Daiju Aoki, regional investment director for Japan at UBS Securities.
“These expectations may hold equities for a few weeks, but there are still questions about the effectiveness of a vaccine and about US fiscal policy. We could see a correction early next year.”
The Dow Jones industrial average fell 0.08% on Wednesday, but the Nasdaq closed up 2% and the S&P 500 gained 0.77%.
Encouraging comments from European Central Bank Director Christine Lagarde on continued economic support boosted European stocks for the third consecutive session.
Moderna Inc said Wednesday that it is preparing to submit data on its experimental COVID-19 vaccine to an independent safety board, which should help determine the vaccine’s efficacy.
Pfizer also said Monday that its vaccine was more than 90 percent effective and that it could release safety data later this month.
Investors around the world are eagerly awaiting details on both drugs, but some analysts are warning that an effective vaccine will still take a long time to distribute.
In the currency market, the New Zealand dollar soared for the second straight session to a 19-month high as investors unwound their bets on introducing negative interest rates.
The kiwi got an additional boost after Reserve Bank of New Zealand Deputy Governor Christian Hawkesby said the economy required less stimulus than in August.
The US dollar was lower against the Japanese yen and the Chinese yuan as traders adjusted positions before US President-elect Joe Biden takes office next year.
The global benchmark Brent oil index rose 0.48% to $ 44.01 a barrel, approaching a two-month high. US crude futures also rose 0.55% to $ 41.62 a barrel.
“Crude markets remain ripped apart by the bleak short-term outlook with increasingly widespread curfews, shutdowns and shutdowns in the US and Europe; and the medium-term outlook in which vaccines may bring a return to more normal conditions, “Westpac analysts for Australia and New Zealand wrote in a note on Thursday.
Spot gold was up 0.22 percent at $ 1,868.76 an ounce.
Benchmark 10-year Treasury yields fell slightly to 0.9406% and the yield curve flattened in Asian trade. The US bond market closed Wednesday in commemoration of Veterans Day after the 10-year yield reached its highest level since March.
Chart: Global Assets: http://fingfx.thomsonreuters.com/gfx/rngs/COMMODITIES-ASSETS/010031B62XZ/index.html
Chart: Global Currencies Against the Dollar: http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html
Chart – Emerging Markets: http://fingfx.thomsonreuters.com/gfx/rngs/WORLD-ECONOMY/0100315T2M2/index.html
Chart: World Index Market Capitalization of All MSCI Countries: http://fingfx.thomsonreuters.com/gfx/rngs/GLOBAL-MARKETS/010060TL1KC/index.html
(Editing by Stephen Coates and Sam Holmes)
