Asian stocks weaken due to stimulus concerns, hold dollar by Reuters

By Alwyn Scott and Anshuman Daga

NEW YORK / SINGAPORE (Reuters) – Asian stocks fell to record highs on Tuesday as long-standing concerns about possible roadblocks to the Biden administration’s $ 1.9 billion stimulus outweighed sentiment, lowering US Treasury yields to three weeks let it fall.

The lower risk appetite gave the dollar some support against a basket of currencies, while oil prices fell.

In a sea of ​​reds seen in Asian markets, South Korea and Hong Kong rose to the top of losers, each falling 1.7%, Japan sliding by 0.6% and Chinese shares plunging 1.5%. Everyone has reached milestone highs this month.

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell 0.7% to 722.7, but was not far from a record high on Monday, rising 9% so far this year.

Australian stock markets closed for a national public holiday.

E-mini futures contracts for the abbreviated 0.26%.

Washington has turned a blind eye, as U.S. lawmakers agree that obtaining COVID-19 vaccines from Americans should be a priority, even if they close horns over the size of the pandemic relief package.

“The immediate question now is when stimulus help will be approved and how much?” says Christopher Grisanti, chief stock strategist at MAI Capital Management.

Financial markets are watching a massive package, though disagreements have meant months of indecision in a country suffering more than 175,000 COVID-19 cases a day, with millions unemployed.

The gross domestic product data for the fourth quarter for the United States, Germany and France available this week may reduce sentiment.

Overnight scaled a new peak, adding 0.7% on hopes of strong earnings later this week from tech titans, but the index struggled to keep pace and fell 0.12%. ()

European stocks closed at two-week lows as a slump in German business morale highlighted the damage due to stricter COVID-19 restrictions. ()

U.S. policymakers are expected to keep the money open when the Federal Reserve’s Federal Reserve Committee meets Tuesday and Wednesday.

“We expect the FOMC to reiterate and reinforce the Fed’s current dovishness in January, which remains important given the recent taper talks and other central banks’ policy adjustments,” said Ebrahim Rahbari, FX strategist at CitiFX. said in a report.

“The Dovish Fed’s policy is a key driver for our view of upside risk assets and a bearish USD view. We therefore continue to keep a close eye on Fed speak and potential policy changes,” he said.

The dollar rose to a one-week high against a currency basket as volatility in stock markets worldwide dampened investors’ appetite for riskier currencies.

The euro slid slightly to $ 1.2142 overnight, keeping levels in Asian trade.

U.S. Treasury yields for ten years continued when they stopped in New York, at 1.0414%, after reaching an all-time low of 1.0300% overnight. [US/]

fell 0.2% to $ 55.75, rising nearly 1% on Monday. [O/R]