By Swati Pandy
Sydney (Reuters)-Asian stocks rose Monday as concerns over an increase in COVID-19 cases and delays in vaccine supply were overturned by expectations of $ 1.9 trillion in fiscal stimulus to help the US economy revive did.
The global stock market has recently hit a record high with the bet that the COVID vaccine will begin to lower its index of refraction around the world and strengthen the US economic recovery under President Joe Biden.
Still, investors are wary of soaring ratings in questions about the efficiency of vaccines in controlling pandemics, and as US legislators continue to discuss coronavirus aid packages.
MSCI’s widest non-Japanese Asia-Pacific stock index rose slightly to 721.96, just off last week’s high of 727.31.
The January benchmark has risen 8.5% so far and is on track for the fourth straight month of gains.
It rebounded from the initial downturn in trading and rose 0.36%.
Australia’s share has also increased slightly after Australian drug regulators approved the Pfizer / BioNTech COVID-19 vaccine, officials said the phased rollout would begin later next month.
China’s stock prices have risen, and the CSI 300 index for high-end stocks has risen 0.6%.
“This week we’ll be in the spotlight in Washington, DC,” said Stephen Innes, Chief Global Market Strategist at Axi.
The Biden administration sought to dispel Republican concerns that the $ 1.9 trillion pandemic bailout was too expensive. Members of both parties said they agreed that the COVID-19 vaccine should be given priority to Americans.
Financial markets are focusing on large-scale economic stimulus measures in the United States, but disagreements are in countries where millions of people are unemployed, suffering from more than 175,000 COVID-19 cases per day. It means making a decision for a few months.
“Vaccine breakthroughs are likely to bring life back to life at some point in 2021, boost GDP growth, and boost corporate profits,” Ines said.
“But the increase in global COVID19 infections, new variants of the virus, increased restrictions on social distance, and delayed vaccine deployment in some places all increase the risk of short-term growth.”
More than 2 million COVID-19 cases worldwide have died and are moving towards 100 million.
Hong Kong closed the area of Kowloon Peninsula on Saturday. This is the first such step the city has taken since the pandemic began.
Reportedly, the new UK COVID variant was not only highly infectious, but probably more deadly than the original strain.
In the European Union, political leaders have expressed widespread disappointment with the hold-up by AstraZeneca (NASDAQ :). Pfizer Inc (NYSE :) provided the promised dose, the Italian Prime Minister blamed the vaccine supplier and said the delay was a serious breach of contractual obligations.
On Friday, the Dow fell 0.57%, losing 0.30% and the Nasdaq adding 0.09%. The three major US indices closed at highs this week, with Nasdaq up more than 4%.
Analysts at Jeffreys (NYSE :) said the US stock market remains bullish, but appears to be overvalued.
“It takes a catalyst for the stock market to not only correct the bull market, but also bring about a really nasty easing,” said analyst Christopher Wood.
“This means either a recession or a significant tightening of the Fed’s policies,” Wood said, adding that neither is likely to happen in a hurry.
In currencies, the market was waiting for a meeting of the US Federal Reserve Board on Wednesday, trapping key pairs in a narrow range.
The euro was flat at $ 1.2169 at 90.19, while Sterling was finally trading at $ 1.3691.
The Japanese yen remained unchanged at 103.77 yen to the dollar.
In commodities, oil prices fell 12 cents to $ 55.29 a barrel and 3 cents to $ 52.24.
Gold was higher and spot prices rose 0.2% to 1,855.9 oz.
Asia’s share rises as US stimulus offsets virus predicament
https://www.investing.com/news/coronavirus/asian-shares-under-pressure-on-rising-coronavirus-cases-2397275 Asia’s share rises as US stimulus offsets virus predicament