SYDNEY (Reuters) – Asian stocks rose on Monday due to concerns about rising COVID-19 cases and delays in vaccine supply, which were overshadowed by expectations of a $ 1.9 trillion fiscal stimulus plan, to help revive the US economy.
Global stock markets have hit record highs in recent days in betting. COVID vaccines will begin to reduce global inflection rates and a stronger US economic recovery under President Joe Biden.
However, investors are also wary of bankruptcy assessments amid questions about the effectiveness of vaccines in fighting the pandemic and as US lawmakers continue to debate a coronavirus aid package.
The broadest MSCI index of Asia-Pacific equities outside Japan rose slightly to 721.96 and just a short distance from last week’s record high of 727.31.
The reference value has increased by 8.5% so far in January, on the path of the fourth consecutive monthly increase.
The Japanese Nikkei returned due to decreases in early trading, up to 0.36%.
Australian stocks were slightly higher even after the country’s drug regulator approved the Pfizer / BioNTech COVID-19 vaccine, with authorities saying the phasing-out will begin at the end of next month.
Chinese stocks rose, the CSI300 blue-chip index rose 0.6%.
“The spots will be in Washington DC this week,” said Stephen Innes, Axi’s chief global market strategist.
The Biden administration has tried to allay Republicans’ concerns that their $ 1.9 trillion pandemic exemption proposal was too costly, with lawmakers on both sides saying they agreed that receiving COVID-19 vaccine should be a priority. .
Financial markets have seen a massive US economic stimulus, although disagreements have meant months of indecision in a country that suffers more than 175,000 COVID-19 cases a day with millions of jobs.
“Vaccine discoveries are making life more functional at some point in 2021, resulting in higher GDP growth and stronger corporate gains,” Innes said.
“But the increase in global COVID19 infections, new variants of the virus, tightening restrictions on social distance and delays in vaccine launches in some places all increase the risks of short-term growth.”
Global COVID-19 cases are approaching 100 million, with over 2 million dead.
Hong Kong closed an area of the Kowloon Peninsula on Saturday, the first such measure the city has taken since the pandemic began.
Reports about the new UK variant COVID was not only extremely infectious, but perhaps more deadly than the original strain added to the concerns.
In the European Union, political leaders have expressed widespread concern about the suspension by AstraZeneca and Pfizer Inc of delivering the promised doses, with the Italian prime minister attacking vaccine suppliers, saying the delays had resulted in a serious breach of contractual obligations.
On Friday, the Dow fell 0.57%, the S&P 500 lost 0.30%, and the Nasdaq added 0.09%. The top three US indices closed higher for the week, with the Nasdaq rising by more than 4%.
Jefferies analysts said US stock markets looked overvalued, although they continued to rise.
“For the stock market to have real ugly relaxation, rather than just a bull market correction, there needs to be a catalyst,” said analyst Christopher Wood.
“That means either an economic recession or a material tightening of Fed policy,” Wood said, adding that none of these will happen in a hurry.
In foreign currency, the major pairs were caught in a tight range as markets waited for a US Federal Reserve meeting on Wednesday.
The dollar index was flat at 90.19, with the euro at $ 1.2169, while the pound was last traded at $ 1.3691.
The Japanese yen remained unchanged at 103.77 per dollar.
In commodities, oil prices fell, Brent fell 12 cents to $ 55.29 a barrel, and the United States fell 3 cents to $ 52.24.
Gold was higher, with spot prices rising 0.2% to 1,855.9 ounces.
Edited by Sam Holmes and Shri Navaratnam