SYDNEY (Reuters) – Asian stocks soared near record highs on Monday as oil surpassed $ 60 a barrel in hopes of a $ 1.9 billion COVID-19 aid package being adopted by U.S. lawmakers as soon as this month, just as coronavirus vaccines are being rolled out worldwide.
In a sign, European and US markets would start strong, but eurostoxx futures and the German DAX each rose 0.7%, while FTSE futures in London rose 0.6%. E-mini futures for the S&P 500 rose 0.4% in early Asian trading.
The mood was aroused in Asia, with all the major indices making the gains.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.5% to 721.11, not far from the high of 730.16 reached late last month.
The Japanese Nikkei jumped about 2%, while Australian equities ended 0.6% higher. Chinese stocks advanced with the blue chip chip CSI300 index, up 1.3%.
Hopes for a faster economic revival and supply offer by producer group OPEC and its allies drove oil to its highest level in a year when it crossed $ 60 a barrel. [O/R]
Global stock markets have scaled down the record high in recent days in hopes of accelerating economic recovery, led by successful vaccine rollouts and expectations of a major US pandemic relief package.
On Friday, the Nasdaq and S&P 500 achieved the highest corporate results in the fourth quarter, and because companies were on track to achieve earnings growth for the first quarter instead of a decline. [.N]
The marches took place even though US data showed a bleak picture of the country’s labor market with salaries rising by 49,000, half of what economists expected.
The weak report spurred the call for more stimulus, highlighting the need for lawmakers to act under President Joe Biden’s $ 1.9 billion COVID-19 aid package.
Biden and his Democratic allies in Congress continued their stimulus plan on Friday when lawmakers approved a budget plan that would allow them to step up in the coming weeks without Republican support.
US Treasury Secretary Janet Yallen has predicted that the United States will get full service next year if Congress can pass its support package.
“This is a big call, as full-time employment is 4.1%, but one that will fit well with the market at a time when the vaccination program is being launched effectively in a number of countries,” said Chris Weston, Melbourne’s chief strategist. , said. Pepperstone.
Expectations of an economic recovery in the US did not boost the setback, ‘because the outlook for the market is seen as part of a global recovery’, Westpac economists write in a note.
“Investors therefore prefer to take risks and therefore value the safety of the US dollar less.”
Indeed, the greenback took off a four-month high of the Japanese yen and was last at 105.50.
The euro was slightly weaker at $ 1.2036 after rising 0.7% on Friday to a one-week high.
The risk-sensitive Australian dollar fell from a one-week high to $ 0.7675.
In commodities, Brent crude and U.S. crude oil rose 59 cents each to $ 59.93 and $ 0.57.44, respectively.
US gold futures rose 0.1% to $ 1,815.4 an ounce.
Edited by Shri Navaratnam and Jacqueline Wong