* Asian stock markets: tmsnrt.rs/2zpUAr4
* US stimulus increases risk appetite
* Japanese stocks peak at 29 years old
* Oil futures contracts are recovering in hopes of higher demand
TOKYO / NEW YORK, 29 dec. (Reuters) – Asian stocks rose on Tuesday, with Japanese stocks hitting a 30-year high as investors’ risk was boosted by a Brexit trade deal and hopes the long-awaited US pandemic rescue package will be extended.
The largest MSCI index of Asia-Pacific equities outside Japan increased by 0.45%. Australian shares reached 0.53%. Nikkei in Japan rose 2.4% to its highest value since August 1990. Shares in China slowed, down 0.32% from takeover.
Futures for the S&P 500 added 0.4%.
Euro Stoxx 50 futures rose 0.42%, German DAX futures rose 0.53% and FTSE futures gained 1.12%, indicating a strong start to European trade.
The dollar caused losses against major currencies and Treasury yields rose after US President Donald Trump approved a $ 2.3 trillion stimulus package to counter the effects of the coronavirus pandemic.
While the package still has to pass the Senate, Trump’s approval on Sunday sent shares on Wall Street to record highs on Monday, amid increased optimism about an economic recovery.
“With Brexit … and with the US stimulus agreement now in the rearview mirror, there is a sense of relief that we have avoided the most unfavorable scenarios,” said Stephen Innes, chief global market strategist at Axi, an agent.
Britain on Thursday struck a narrow Brexit trade deal with the EU just seven days before leaving one of the world’s largest trading blocs.
Firmer demand for riskier assets has kept the US dollar, which is often seen as a “safe haven” asset, on its back foot. It decreased by 0.02% compared to a basket of major currencies.
The shortening of the dollar was recently a popular transaction, and Reuters calculations based on data released Monday by the Commission for the Future Trading of Commodities suggested that the trend could continue. Short positions in the dollar swelled in the week ended December 21 to $ 26.6 billion, the highest in three months.
The dollar index against a basket of six major currencies fell to 90,137, not far from the lowest in two years.
The pound rose to $ 1.3483, after last week’s confirmation of a long-awaited UK-EU trade deal.
A slow dollar supported gold prices, which rose 0.33% to $ 1,877.56 an ounce.
Jack Ma’s Alibaba Group Holding Ltd rose 6.4% to six consecutive declines. Analysts said the gains could be short-lived, given that Chinese regulators have called for a shake-up of Ant Group, Alibaba’s mobile payments group, and consumer financing.
Analysts also noted concerns that other large Chinese technology companies could be subject to greater government control, which could reduce investment in the sector.
Oil prices have recovered after falling overnight due to concerns about rising supply and lower demand amid fresh COVID-19 travel restrictions around the world.
Crude oil rose 0.45% to $ 51.09 a barrel. American crude rose 0.48% to $ 47.85 a barrel.
Several US tax incentives have also eased concerns about the threat posed by new variants of the coronavirus identified in the UK and South Africa.
The yield on the Treasury’s 10-year reference banknotes increased to 0.9381%, but decreased to 0.1270% over two years.
Reporting by Stanley White and Koh Gui Qing; Editing by Sam Holmes, Stephen Coates and Jane Wardell