Reuters. Amid an outbreak of coronavirus disease (COVID-19) in Tokyo, a man wearing a protective face mask walks behind a stock quotation board outside a brokerage.
By Hideyuki Sano
TOKYO (Reuters) – Asian stocks rose to record highs on Friday on the prospect of a bigger US economic package, while vaccine rollouts are expected to outpace the global economy and boost investor sentiment.
MSCI’s broad index of Asia-Pacific shares outside Japan rose 0.6% to its ninth. Surpassed the top of 25, while profit fell 0.4%.
In New York, it fell 0.06% on Thursday, reversing previous gains after a Wall Street Journal report. Pfizer (NYSE 🙂 reduced the target for its COVID-19 vaccine rollout due to supply chain disruptions.
Yet, the loss did not last long, with the S&P 500 futures up 0.3% in early trading on Friday.
The bilateral, 90 908 billion coronavirus aid plan gained momentum in the US Congress on Thursday, when hardline lawmakers voiced their support and the leaders of the Senate and House of Representatives stalled.
Norihoro Fujito, chief investment strategist at Mitsubishi UFJ (NYSE), said the deal a year ago seemed almost impossible but now a package of about 1 1 trillion seems within reach. Morgan Stanley (NYSE 🙂 Securities.
On top of financial support, investors expect U.S. The Federal Reserve will tweak its asset purchase plan earlier this month, while the European Central Bank looks set to increase its bond purchases next week.
Progress in developing the COVID-19 vaccine has also led investors to reclaim corporate earnings that have gained momentum in the revenue year, overriding any concerns about the current horrific epidemic conditions.
The United States tops 14 million known COVID-19 infections, with more than 100,000 patients hospitalized for the first time. California imposed a stay-at-home order to be effective as intensive care units come close to capacity in the coming days.
“Stock markets are behaving as if the world has already overcome the disease. In fact, it will take time for vaccines to reach every corner of the globe and the infection will start to decrease,” said Fujito of Mitsubishi UFJ.
“Looking at the rapid rise in share prices over the past month, there will be some profit. However, I don’t think the market is rebounding yet.”
The upbeat mood saw the US dollar lose out on other major currencies as well as risky, low liquidity.
The euro rose to 21 1.2142, its highest level since April 2018, while the yen remained at 103.85 against the dollar, holding up 0.5% from the previous day.
Traders are hoping for a trade deal between the European Union and Britain after the British pound touched a three-month high of $ 1.3453 on Thursday.
As negotiations continue to secure the Brexit deal, an EU official said the deal was closer than before but a UK government source warned that the chances of progress were diminishing.
MSCI’s ging-filled market currency index rose more than 10% from the March 2 trough to a 1/2-year high.
OPEC and Russia agreed to reduce their deep oil production by 500,000 barrels (bpd) per day in January after a sharp lift in oil prices in commodities, although they failed to agree on a comprehensive and long-term policy.
This increase means that the Organization of the Petroleum Exporting Countries and Russia, a group called OPEC +, will reduce production by 2.2 million bpd or global% global demand from January, compared to the current reduction of 7.7 million bpd.
It has risen to .949.92 per barrel, its highest price since the beginning of March and last stood at .549.59.
