SYDNEY (Reuters) – Asian stocks hit record highs on Monday as the successful launch of the coronavirus vaccine raises global hopes for a quick economic recovery amid new fiscal aid from Washington, as oil prices rose as tensions rose. Middle East.
The signals for Europe and the United States were also positive, with futures contracts for eurostoxx 50 increasing by 0.5%, those for DAX in Germany increasing by 0.7%, and futures contracts in London with FTSE increasing by 0.8 %.
E-mini futures for the S&P 500 rose 0.5%, although US stock markets will close on Monday for Presidents’ Day.
The broadest MSCI index of Asia-Pacific equities outside Japan rose 0.6% to 738.23, with all major indices in the green.
The Japanese Nikkei rose 1.9%, recovering 30,000 points for the first time in three decades, despite data showing the country’s recovery from the worst slowed post-war recession in the fourth quarter.
Australia’s benchmark added 0.9%.
Markets in China and Hong Kong are closed for the Lunar New Year holiday.
The highlight of the week will probably be the minutes of the US Federal Reserve meeting in January, where policymakers decided to leave rates unchanged.
Inflation data is due from the UK, Canada and Japan, while major economies will be seen on Friday, including the United States, which will release preliminary indices from February purchasing managers (PMIs).
While economists expect inflation to remain benign for some years, the so-called “trade of reflection” has gathered in recent days, largely driven by coronavirus vaccines and the hope of massive tax spending under US President Joe Biden.
Biden called for the first major legislative fulfillment of his term, calling on a bipartisan group of local officials to help with his $ 1.9 trillion coronavirus aid plan.
“In our opinion, as long as growth (inflation) is gradual, stock markets can continue to function well. However, unruly moves would certainly affect investor sentiment, ”said Esty Dwek, head of global market strategy, Natixis Investment Managers Solutions.
“Credit spreads have already sharpened sharply, but they still need to absorb higher yields, making us more comfortable with credit risk than interest rate risk,” Dwek added.
“Goods would benefit from an inflationary cycle, but can continue to recover without high core inflation as economies reopen and demand grows.”
Oil prices have risen to their highest level since January 2020, hoping that US incentives will increase the economy and fuel demand.
Prices have also been dynamic after a Saudi-led coalition fighting in Yemen said it had intercepted an explosive-laden drone launched by the Houthi group aligned with Iran, raising fears of fresh tensions in the Middle East. [O/R]
Crude oil rose $ 1.2 to $ 63.66 a barrel. US oil earned $ 1.4 to $ 60.88.
On Friday, the S&P 500 and Nasdaq set closing records. The Dow finished 0.1% higher at 31,458.4 points, the S&P 500 gained 0.5% to 3,934.83, and the Nasdaq added 0.5% to 14,095.47. [.N]
Currency action has been disabled.
The dollar was slightly higher against the Japanese yen at 105.08, while the euro rose to $ 1.2139 and the pound rose 0.4% to $ 1.3894. The Australian dollar and the risk-sensitive New Zealand dollar each rose 0.3%.
This left the dollar index lower at 90,296.
Bitcoin fell more than 3% to $ 46,992, below a record high of $ 49,714.66. It posted gains of about 20% in a major week marked by the approval of major companies such as Elon Musk’s Tesla.
Reporting by Swati Pandey in Sydney; Editing by Kim Coghill and Jacqueline Wong