TOKYO / NEW YORK (Reuters) – Asian stocks rose on Wednesday, following modest gains on Wall Street as expectations of a vaccine eventually winning the fight against coronavirus fueled hopes of recovery, while tight supply expectations brought oil prices to a one-year high.
The largest MSCI index of Asia-Pacific stocks outside Japan rose 0.61%, while the Japanese Nikkei 225 rose 1.12%.
Chinese stocks rose 0.07%, while KOSPI in South Korea gained 1.05%. Australia’s S & P / ASX 200 reversed losses and added 0.18%.
US futures rose 0.18%.
Treasuries expanded their rally, bringing benchmark yields 10 years away from the highest in nearly a year and causing the yield curve to flatten slightly.
Euro Stoxx 50 futures fell 0.03%, German DAX futures rose 0.03% and UK futures with FTSE rose 0.18%, indicating a moderate start to European trade.
Investors are betting that the new Biden administration will increase the distribution of coronavirus vaccines in the United States and spend much more on stimulus, which will contribute to a global economic recovery and increased demand for goods, analysts say.
Hugh Young, head of Asia Pacific at Aberdeen Standard Investments, said he expects investor interest in Asia, seen in the second half of 2020, to be sustained this year.
“The eternal question is overvaluation. Asian markets have done extremely well, which is somewhat frustrating, but certainly the quality is in Asia, the momentum is in Asia, so it seems to be a stable year and a positive year for Asia, “Young said in a statement. a panel at Reuters Next conference.
On Wall Street, shares fluctuated almost unchanged for the session, not far from record highs. The Dow rose 0.19%, the S&P 500 gained 0.04%, and the Nasdaq Composite added 0.28%.
US West Texas Intermediate (WTI) rose 1.13% to $ 53.81 a barrel, the highest since February, after a larger-than-expected drop in US crude oil stocks. Gross Brent rose 1.27% to $ 57.30. [API/S]
Oil prices were also supported after Saudi Arabia said it plans to cut production by an additional 1 million barrels a day in February and March.
Some investors have been monitoring developments in Washington after at least three Republicans said they would join Democrats in a vote expected Wednesday to blame President Donald Trump for the recent turmoil in the U.S. chapter.
With seven days left in his term, Trump faces charges of instigating the insurrection in a speech to his followers last week, before hundreds of them stormed the Chapter, leaving five dead. Trump says his speech was appropriate.
An indictment could continue even after Trump leaves office on January 20, but analysts say he does not expect other political unrest in Washington to affect markets.
“The election markets have been pretty strong because the uncertainty factor has been eliminated,” said Peter Essele, head of portfolio management at the Commonwealth Financial Network in Boston.
US government 10-year benchmark debt yields fell 1.1240% on Wednesday, down from a nearly one-year high of 1.1870% in the previous session following a well-received 10-year new tender. .
The yield curve, which peaked in May 2017 in terms of expectations for large fiscal incentives in a new democratic administration, fell slightly to 97.5 basis points.
The dollar suffered losses on Wednesday, while a withdrawal from US yields ruled out its recent return.
Against the yen, the dollar fell 0.12% to 103.65. The dollar also fell to $ 1.3683 against the pound.
Gold on the spot added 0.2% to $ 1,860.13 per ounce.
Reporting by Stanley White in Tokyo and Chibuike Oguh in New York; Editing by Sam Holmes, Ana Nicolaci da Costa and Kim Coghill