* Asian stock markets: tmsnrt.rs/2zpUAr4
* US stimulus increases appetite for risk
* Japan’s stocks reach a maximum of 29 years
* Oil futures are recovering in hopes of higher demand
TOKYO / NEW YORK, Dec 29 (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 expand the pandemic relief package in the United States. .
MSCI’s broader Asia-Pacific stock index outside of Japan rose 0.45%. Australian shares ended 0.53%. The Japanese Nikkei rose 2.4% to its highest level since August 1990. Shares in China slowed the trend, falling 0.32% in earnings.
S&P 500 futures added 0.4%.
Euro Stoxx 50 futures rose 0.42%, German DAX futures rose 0.53% and FTSE futures gained 1.12%, pointing to a bright start to European trade.
The dollar caused losses against major currencies and Treasury yields rose after U.S. President Donald Trump approved a $ 2.3 trillion stimulus package to counteract the effects of the coronavirus pandemic.
While the package has yet to pass the Senate, Trump’s approval on Sunday sent shares to Wall Street to record highs Monday amid growing optimism about the economic recovery.
“With Brexit … and the US stimulus deal now in the rearview mirror, there is a sense of relief because we have avoided the respective worst-case scenarios,” said Stephen Innes, Axi’s leading global market strategist , running Man.
Britain signed a Brexit trade deal with the EU on Thursday, just seven days before leaving one of the world’s largest trading blocs.
Stronger demand for riskier assets kept the US dollar, which is often seen as a “safe haven” asset, at the bottom. It fell 0.02% against a basket of major currencies.
The dollar’s decline has been a popular trade recently and Reuters calculations based on data released by the Commodity Futures Trading Commission on Monday suggested the trend could continue. Dollar short positions rose in the week ending Dec. 21 to $ 26.6 billion, the highest in three months.
The dollar index against a basket of six major currencies fell to 90,137, far from the lowest in two years.
The pound rose to $ 1.3483 after last week’s confirmation of a widely expected trade deal between the UK and the EU.
A slow dollar boosted gold prices, which rose 0.33% to $ 1,877.56 an ounce.
Jack Ma’s Alibaba Group Holding Ltd rose 6.4%, reaching six consecutive sessions of falls. Analysts said the gains could be short-lived, as Chinese regulators have called for a shake-up from Ant Group, Alibaba’s mobile payments and consumer finance group.
Analysts also cited concerns that other major Chinese technology companies could face tight government control, which could slow investment in the sector.
Oil prices rebounded after falling overnight due to concerns about rising supply and lower demand amid COVID-19 travel restrictions around the world.
Brent crude rose 0.45% to $ 51.09 a barrel. US crude rose 0.48% to $ 47.85 a barrel.
Greater U.S. fiscal stimulus has also eased concerns about the threat posed by new coronavirus variants identified in Britain and South Africa.
The yield on 10-year Treasury bills rose to 0.9381%, but the two years eased to 0.1270%.
Reports by Stanley White and Koh Gui Qing; Edited by Sam Holmes, Stephen Coates and Jane Wardell