Asian Equities, Commodities Gain on Economic Recovery Trade

Asian stocks rose on Wednesday, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while tight supply expectations pushed oil prices to a oneyear high. MSCIs broadest index of AsiaPacific shares outside Japan rose 0.61, while Japans Nikkei 225 rose 1.12. Chinese shares rose 0.07 while South Koreas KOSPI gained 1.05. Australias SPASX 200 reversed losses and added 0.18. U.S. stock futures edged up by 0.18. Treasuries extended their rally, pulling benchmark 10year yields further away from the highest in almost a year and causing the yield curve to flatten slightly.

Euro Stoxx 50 futures fell 0.03, German DAX futures were up 0.03 and Britains FTSE futures were up 0.18, pointing to a subdued start to European trade. Investors are betting that the incoming Biden administration would ramp up U.S. distribution of coronavirus vaccines and spend big on more stimulus, which will contribute to a global economic recovery and increased demand for commodities, analysts say. Hugh Young, head of Asia Pacific at Aberdeen Standard Investments, said he expected the investor interest in Asia seen in the second half of 2020 to be sustained this year.

On Wall Street, stocks fluctuated near unchanged for the session, not far from record highs. The Dow rose 0.19, the SP 500 gained 0.04 and the Nasdaq Composite added 0.28. U.S. West Texas Intermediate WTI rose 1.13 to 53.81 a barrel, reaching the…

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:News