Asian stocks stood near a maximum of 1-1 / 2 weeks on Monday, helped by monetary policy expectations will remain accommodative around the world, while COVID-19 vaccine launches help allay fears of another dangerous wave of infections with coronavirus.
The largest MSCI index of Asia-Pacific stocks outside of Japan (.MIAPJ0000PUS) was last at 695.59, a striking distance of a high of 696.48 on Friday – a level not seen since April 7.
The index rose 1.2% last week and rose 5% so far this year on its way to its third annual gain.
“Extremely favorable monetary and fiscal policy continues to provide a fertile environment for risky assets,” said Rodrigo Catril, chief currency strategist at National Australia Bank.
Shares in Australia (.AXJO) were 0.25% higher, while the New Zealand benchmark (.NZ50) and South Korean KOSPI (.KS11) added 0.4% each. The Japanese Nikkei (.N225) fell 0.4%.
On Friday, the S&P 500 (.SPX) gained 0.4% to close at a new record high while recording its sixth consecutive weekly gain. The Dow (.DJI) also ended 0.5%, a record high, while the Nasdaq (.IXIC) rose 0.1%.
E-mini futures for the S&P 500 fell 0.3% in early Asian transactions.
This week starts quietly, with no major data releases scheduled for Monday.
Investors will keep their eyes closed for earnings from IBM (IBM.N) and Coca-Cola (COKE.O) later that day. Netflix (NFLX.O) reports on Tuesday, while during the week American Airlines (AAL.O) and Southwest (LUV.N) will be the first major post-COVID cycles to release results.
The European Central Bank (ECB) is meeting on Thursday, without expecting changes in rates or guidelines, while preliminary data on plant activity around the world for April is expected on Friday.
Elsewhere, Bitcoin, the world’s largest cryptocurrency, recovered most of its losses after falling to 14% on Sunday, following speculation that the US Treasury could seek to reduce money laundering in digital assets, said Catril, NAB.
The data site CoinMarketCap cited an outage in the Chinese region of Xinjiang, which is supposed to fuel a lot of bitcoin mining, for sale. Read more
The withdrawal in Bitcoin comes after Turkey’s central bank banned the use of cryptocurrencies for purchases on Friday. Read more
Bitcoin is growing by more than 90% so far, driven by its main acceptance as an investment and means of payment, accompanied by the rush of retail cash in stocks, exchange traded funds and other risky assets.
In currencies, the U.S. dollar fell nearly a four-week low against a basket of currencies as investors increasingly bought the Federal Reserve’s insistence that it will maintain an accommodative political stance for a longer period.
The dollar index, which measures the green dollar against a basket of six currencies, was unchanged at 91,612, not far from the lowest level since March 18 reached on Friday.
Against the Japanese yen, the green dollar fell to 108.72. The euro was slightly lower at $ 1.1966, while the pound fell 0.07% to $ 1.3820.
The risk-sensitive Australian dollar fell for the second day in a row to fall 0.2% to $ 0.7715.
In commodities, oil prices fell, with Brent slipping 34 cents to $ 66.43 a barrel and US crude falling 29 cents to $ 62.84.
Gold rose 0.2% to $ 1,779.3 an ounce.
Our standards: Thomson Reuters’ principles of trust.