👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

GLOBAL MARKETS-Asian shares advance as vaccine, recovery hopes triumph soft U.S. data

Published 2020-11-25, 10:16 p/m
© Reuters.
EUR/USD
-
USD/JPY
-
US500
-
DJI
-
JP225
-
LCO
-
ESZ24
-
CL
-
NQZ24
-
IXIC
-
MIAPJ0000PUS
-
MIWD00000PUS
-

* Asian shares gain 0.3%, Nikkei up 0.6%

* U.S. S&P500 futures up 0.2%, erasing Wednesday's losses

* World stocks on track to make biggest monthly gain ever

* 2020 asset performance http://tmsnrt.rs/2yaDPgn

* Global stock market outlook: https://tmsnrt.rs/3nT0J5r

By Hideyuki Sano

TOKYO, Nov 26 (Reuters) - Asian shares advanced on Thursday as markets' euphoric mood over COVID-19 vaccines and the prospects of more political predictability and economic stimulus under the incoming Biden administration overrode a slate of weak U.S. economic data.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3% while Japan's Nikkei .N225 gained 0.6%.

U.S. S&P 500 future ESc1 rose 0.2% in Thursday's Asian trade while Nasdaq futures NQc1 rallied 0.4%.

MSCI's broadest gauge of the world's shares covering 49 markets .MIWD00000PUS added 0.1% to bring its gains so far this month to 12.7%, on course to make its biggest monthly gain on record.

The rally started after Democrat Joe Biden's U.S. election victory earlier this month raised hopes for more government spending to support the pandemic-hit economy and for more policy predictability after four years of Donald Trump's presidency.

"Reduced policy uncertainties are helping markets. It will be easier for companies to make capital expenditures," said Arihiro Nagata, general manager of global investment at Sumitomo Mitsui Bank.

"It's true that stock prices are quite expensive but markets are finding fewer and fewer reasons to sell them. In this environment, you can't make profits by selling. The only question to ask is what assets you should buy."

On Wall Street on Wednesday, the S&P 500 index .SPX shed 0.16% and the Dow Jones Industrial Average .DJI 0.58%, though the tech-heavy Nasdaq Composite .IXIC increased 0.47%.

Traders attributed falls in S&P 500 and the Dow Jones to weak U.S. economic data.

Figures from the U.S. Labor Department's weekly jobless claims suggested that an explosion in new COVID-19 infections and business restrictions were boosting layoffs and undermining the labor market recovery. think a lot of people got ahead of themselves imagining that the recovery was taking shape. To me the recovery isn't taking shape until we have a viable vaccine," said Justin Lederer, Treasury analyst and trader at Cantor Fitzgerald.

But investors also noted markets will remain awash with cash to invest, with the world's central banks ready to provide more support for the pandemic-stricken economy.

Minutes from the U.S. Federal Reserve's last policy meeting showed policymakers consider giving markets a better steer on how long they will continue to buy bonds to provide support to an economy under siege from a resurgence of coronavirus infections. somewhat out of character that they mention taking this step "fairly soon" when they haven't begun a discussion of this with the public," wrote Michael Feroli, chief U.S. economist at J.P. Morgan in New York.

The Fed could extend of the maturity of its Treasury purchases if its board members judge that deterioration in the pandemic warrants more policy accommodation, he added.

In commodities, oil prices rose for a fifth day as a surprise drop in U.S. crude inventories added to the positive mood stemming from hopes of demand recovery. O/R

U.S. crude CLc1 rose 0.77% to $46.06 per barrel and Brent LCOc1 gained 0.88% to $49.04

In the currency market, the U.S. dollar stayed under pressure as riskier currencies benefited from the increased optimism.

The dollar's index against a basket of major currencies dipped 0.07% to 91.919 USD= , hitting its lowest levels in almost three months.

The euro held firm at $1.1925 EUR= while sterling also stood near three-month high at $1.3391 GBP=D4 .

The yen was little moved at 104.28 yen to the dollar JPY= .

Trade was slow as U.S. financial markets will be closed on Thursday for the Thanksgiving holiday. U.S. bonds and stocks will trade on a partial schedule on Friday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.