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Asian equities seek a recovery lead from China, Reuters focusing on earnings

© Reuters.Investors are sitting in front of a board displaying brokerage stock information on the first day of trading in China since Hangzhou Chinese New Year

Wayne Cole

Sydney (Reuters)-Asia as investors bet that China’s economic strength would help support regional growth, despite the threat of a pandemic blockade prolonging the path to a western recovery The stock market moved forward on Tuesday.

According to data on Monday, China’s economy was one of the few in the world to grow in 2020 and actually accelerated towards the end of the year.

MSCI’s widest non-Japanese Asia-Pacific stock index was set at 0.2%, the highest whisker ever. Attention recovered all losses incurred on Monday when it dominated the market and bounced back 1%.

US stocks also seemed to be somewhat stable, with futures at 0.4% and NASDAQ futures at 0.3%.

Analysts at JP Morgan (NYSE :) felt that the upcoming earnings season could brighten the mood, given that the European consensus fell 25% year-on-year to a very low level. It was.

“Expected EPS growth in Europe is at the lowest of a crisis that seems too conservative and could lead to positive surprises during the reporting season,” he said.

The same is true for the United States, which includes BofA in this week’s results. Morgan Stanley (NYSE :), Goldman Sachs (NYSE :) and Netflix (NASDAQ :).

For now, the dealer has considered the risk of more mob violence, along with doubts about how much of his fiscal stimulus will pass Republican opposition in Congress, and US President-elect Joe Biden. I was cautious prior to taking office.

Biden’s Treasury candidate Janet Yellen told the Senate Finance Committee on Tuesday that the government must “make a big move” on the coronavirus bailout program.

“Biden wouldn’t want to increase the risk of a double-bottom recession,” said an ANZ analyst.

The combined $ 1.9 trillion proposal, combined with the already agreed stimulus package, represents 10% of GDP.

“It will be enough to fill the output gap and support the gradual recovery of inflation as a demanding company,” they wrote. “But it will be a difficult winter, and investors will need new confidence in inflationary trade before established previous trends reassert themselves.”

Wall Street is also preparing for more stringent regulations as the Democratic Party dominates the Senate and Biden sets two consumer champions to nominate top financial institutions.

In the bond market, 10-year Treasury yields stabilized at 1.10%, below the recent 10-month high of 1.187%, as investors watched how much fiscal stimulus actually passed. I did.

The currency is also quiet, ending at 90.770, ahead of the recent trough of 89.206.

The euro idled at $ 1.2080 after hitting a six-week low of $ 1.2052 overnight, but the dollar leveled off at a safe yen of 103.70.

The Canadian dollar fell to $ 1.2750 in reports that Biden would revoke the Keystone XL pipeline permit as one of the first actions in the office.

Gold temporarily hit a six-week low of $ 1,809.90 overnight and then stabilized at $ 1,836 per ounce. [GOL/]

Oil prices have been restrained due to concerns about global demand. Futures weren’t traded yet, but added a penny to $ 52.37 a barrel. [O/R]

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Asian equities seek a recovery lead from China, Reuters focusing on earnings Asian equities seek a recovery lead from China, Reuters focusing on earnings

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