SYDNEY (Reuters) – Asian stocks rose on Monday due to concerns about rising COVID-19 cases and delays in vaccine delivery that were overshadowed by expectations of a fiscal stimulus plan. $ 1.9 trillion that would help revive the U.S. economy.
Global equity markets have climbed record highs in recent days in betting. COVID vaccines will begin to reduce turnout rates around the world and into a stronger U.S. economic recovery under President Joe Biden.
However, investors are also wary of the imposing ratings amid questions about the effectiveness of vaccines to curb the pandemic and as U.S. lawmakers continue to debate a coronavirus aid package.
MSCI’s broader Asia-Pacific stock index outside of Japan rose slightly to 721.96 and close to last week’s record high of 727.31.
The benchmark has increased by 8.5% so far this January, following its fourth consecutive monthly rise.
The Japanese Nikkei rebounded after the falls in the first operations to increase by 0.36%.
Australian stocks were also slightly higher after the country’s drug regulator approved the Pfizer / BioNTech COVID-19 vaccine, with authorities declaring that phased deployment will begin late next month.
Chinese stocks rose, with a blue-chip CSI300 index up 0.6%.
“The focus this week will be on Washington DC,” said Stephen Innes, Axi’s chief strategist in global markets.
The Biden administration tried to dispel Republican concerns that its $ 1.9 trillion pandemic relief proposal was too expensive, with lawmakers on both sides saying they had agreed to get it. the COVID-19 vaccine in Americans should be a priority.
Financial markets have been alert to a massive economic stimulus from the United States, although disagreements have led to months of indecision in a country that suffers more than 175,000 COVID-19 cases a day with millions out of work.
“Advances in vaccines make life likely to be more functional at some point in 2021, leading to higher GDP growth and stronger business gains,” Innes said.
“But increasing global COVID19 infections, new variants of the virus, tightening restrictions on social distancing, and delaying the deployment of vaccines in some places, increase the risks of short-term growth.”
Global cases of COVID-19 increase to 100 million, with more than 2 million deaths.
Hong Kong closed an area of the Kowloon Peninsula on Saturday, the first step the city has taken since the pandemic began.
According to reports, the new variant of COVID in the UK was not only highly infectious, but perhaps more deadly than the original variety which was also added to the concerns.
In the European Union, political leaders expressed great dismay at the retention of AstraZeneca and Pfizer Inc. in delivering the promised doses, and the Italian prime minister attacked vaccine suppliers, saying the delays amounted to a breach. 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 U.S. indices closed higher during the week, with a Nasdaq above 4%.
Jefferies analysts said U.S. stock markets appeared overvalued, although they remained bullish.
“For the stock market to have a really nasty development, rather than a simple bullish market correction, there needs to be a catalyst,” analyst Christopher Wood said.
“This means an economic recession or a material tightening of Fed policy,” Wood said, adding that neither would occur in a hurry.
In currencies, major pairs were trapped in a narrow range as markets awaited a U.S. Federal Reserve meeting on Wednesday.
The dollar index was flat at 90.19, with the euro at $ 1.2169, while the pound sterling traded at $ 1.3691.
The Japanese yen remained unchanged at 103.77 per dollar.
In commodities, oil prices fell with Brent down 12 cents to $ 55.29 a barrel and the U.S. down 3 cents to $ 52.24.
Gold was higher, with spot prices of 0.2%, at 1,855.9 ounces.
Edited by Sam Holmes and Shri Navaratnam