Asian equities hovered near 1-1 / 2-week highs on Monday, helped by expectations that monetary policy will remain accommodative worldwide, while the rollout of COVID-19 vaccines will help ease fears of another dangerous wave of coronavirus infections.
MSCI’s widest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) was last at 695.59, within striking distance of Friday’s high of 696.48 – a level not seen since April 7.
The index rose 1.2% last week and has risen 5% so far this year, on its way to its third straight annual profit.
“The highly supportive monetary and fiscal policy structure continues to provide a fertile environment for risk assets,” said Rodrigo Catril, senior forex strategist at National Australia Bank.
Australian equities (.AXJO) were up 0.25% while New Zealand’s benchmark index (.NZ50) and South Korea’s KOSPI (.KS11) each added 0.4%. Japan’s Nikkei (.N225) lit up 0.4%.
On Friday, the S&P 500 (.SPX) rose 0.4% to close a new record high while achieving its sixth straight weekly profit. The Dow (.DJI) gained 0.5%, also at a record high, while the Nasdaq (.IXIC) climbed 0.1%.
E-mini futures for the S&P 500 fell 0.3% in early Asian trading.
This week starts quietly, with no major data releases on Monday.
Investors will be keeping an eye on earnings from IBM (IBM.N) and Coca-Cola (COKE.O) later in the day. Netflix (NFLX.O) reported Tuesday, while American Airlines (AAL.O) and Southwest (LUV.N) will be the first major cyclical post-COVID results later this week.
The European Central Bank (ECB) is meeting on Thursday with no change in rates or guidance, while preliminary data on factory activity around the world is available for April Friday.
Elsewhere, Bitcoin, the world’s largest cryptocurrency, has recovered most of its losses after sinking to 14% on Sunday after speculation that the US Treasury may be trying to curb money laundering activities within digital assets, NAB’s Catril said. said.
The data website CoinMarketCap cites an eclipse in the Xinjiang region of China, which allegedly drives a lot of bitcoin mining, for sale. read more
The decline in Bitcoin also comes after Turkey’s central bank on Friday banned the use of cryptocurrencies for purchases. read more
Bitcoin is year over year more than 90% higher, driven by its general acceptance as an investment and a means of payment, accompanied by the rush of retail cash to stocks, exchange traded funds and other risky assets.
In currencies, the US dollar hit a four-week low against a basket of currencies as investors increasingly bought into the Federal Reserve to keep it afloat for a while longer.
The dollar index, which measures the greenback with a basket of six currencies, was unchanged at 91,612, not far from the lowest since March 18 on Friday.
Against the Japanese yen, the rookie lost 108.72. The euro was slightly lower at $ 1.1966, while the British pound fell 0.07% to $ 1.3820.
The risk-sensitive Aussie dollar slipped for a second consecutive day to drop 0.2% to $ 0.7715.
In commodities, oil prices fell, while Brent fell 34 cents to $ 66.43 a barrel and US crude fell 29 cents to $ 62.84.
Gold rose 0.2% to $ 1,779.3 an ounce.
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