Reuters. File photo: Pedestrians wearing face masks are reflected on an electric board that shows stock prices outside a business district brokerage in Tokyo.
By Wayne Cole
SYDNEY (Reuters) – Asian stock markets stalled on Monday on reports of possible tightening of coronavirus emergency rules for Tokyo, while safe haven also lifted the yen, pushing Japanese stocks to a 30-year high.
Investors are still counting on central banks to keep money more affordable while the rollout of coronavirus vaccines helps revive the global economy over time, but much of that optimism has already been determined and the virus is not cooperating.
Fuji TV reports that its initial gains will fall to 1.1% in the report as the government considers a state of emergency for capital Tokyo and three surrounding prefectures.
Outside of Japan, MSCI’s Broadcast Index of Asia-Pacific shares rose 0.1%, a record high.
E-Mini futures fell 0.2% after touching a new all-time high in early trading.
Investors are cautiously watching the runoff election in Georgia for Tuesday’s two U.S. Senate seats that will determine which party controls the Senate.
If the Republican wins in one or both, it will retain a slim majority in the chamber and could block President-elect Joe Biden’s legal goals and judicial nominees.
“If Democrats win both races, Vice President-elect Kamala Harris will have a tiebreaking vote, giving the party unified control of the White House and Congress,” CBA-registered analysts said.
“This would increase the likelihood that the US infrastructure spending package would be quickly tracked by Congress.”
The Federal Reserve’s December meeting on Wednesday should further clarify its next policy guidance and discuss further prospects for a further increase in asset purchases this year.
The data calendar includes a raft of product surveys from around the world, which will show how the industry is coping with the spread of coronavirus, and the U.S. Closely monitors ISM surveys of factories and services.
A survey showed that factory activity in Japan stabilized for the first time in two years in December, while activity in Taiwan gained momentum.
Friday U.S. The December payroll report looks at where the average forecast is just for a modest increase of 100,000.
As analysts Barclays (LON 🙂 is tipping a 50,000 drop in jobs, which will shatter market hopes of a quick recovery.
Economist Michael Gapen said in a note that the economy closed at the end of the year with a number of incoming indicators, including labor market data, where initial claims rose during the December survey period.
Such a reduction would increase the pressure on the Fed to ease further, another burden for the dollar that the U.S. No budget and trade is already languishing under the weight of the deficit.
The last one was at 89.786, not far from its recent 2-1 / 2-year low, which dropped nearly 7% in 2020.
The euro inc reached 1.2245, making a profit last weekend when it reached its highest since 1.2309 in early 2018. It grew by about 9% in 2020.
The dollar slipped to 103.02 yen, and will see the risk of testing key support at 102.55. Sterling was firm at 3 1.3674, cutting the gap to its recent top 3 0.13686.
The dollar’s decline has been supported by gold, which is 0.6% stronger at 1,910 dollars per ounce.
Oil prices have stabilized after a few months of solid gains, with Brent’s seat resistance hovering around 52.50 bar. The rebound still left Brent down 21.5% and WTI 20.5% for the year.
Monday futures fell 8 cents. Remained at 51.72, while with a decline of 12 cents. Is at the level of 48.40 dollars.