Asian shares climbed to near alltime highs on Monday as concerns over rising COVID19 cases and delays in vaccine supplies were eclipsed by optimism of a 1.9 trillion fiscal stimulus plan to help revive the U.S. economy.
Sentiment in the region was also boosted by a report that China had surpassed the United States to be the largest recipient of foreign direct investment in 2020 with 163 billion in inflows.
Futures markets also pointed to firmer starts elsewhere. Emini futures for the SP 500 rose 0.37, futures for eurostoxx 50 as well as Londons FTSE were up 0.3 each while those for Germanys DAX added 0.4.
The FDI story has definitely lifted China and its near neighbours today, blowing an economic recovery tailwind into geographically adjacent markets, said OANDAs Singaporebased market analyst Jeffery Halley.
Looking ahead, equities will find more meaningful reactions from the progress or not of the Biden stimulus package, and the level of dovishness displayed by the Federal Reserve at their FOMC meeting this week.
Global equity markets have scaled record highs in recent days on bets COVID19 vaccines will start to reduce the infection rates worldwide and on a stronger U.S. economic recovery under President Joe Biden.
Still, investors are also wary about towering valuations amid questions over the efficiency of the vaccines in curbing the pandemic and as U.S.lawmakers continue to debate a coronavirus aid package.
MSCIs broadest index of AsiaPacific shares outside…