Asian Stock Market: Chatters over vaccine, stimulus favor bulls to track Wall Street gains

MSCI’s gauge of Asia-Pacific shares refresh record high, Japan’s Nikkei 225 gains over 1.0%.
US policymakers inch closer to covid aid package, vaccine is nearby.
Bulls ignore Brexit woes, surge in virus figures and China’s first CPI contraction in over a decade.

Anil Panchal FXStreet

Asian shares cheer hopes of the US coronavirus (COVID-19) stimulus and the nearness to the vaccine during the early Wednesday. In doing so, the Asia-Pacific equities shrug off downbeat inflation data from China and a surge in the virus infections and death toll in America. Also getting less attention from traders are fears of a no-deal Brexit and the Sino-American tussle.

That said, MSCI’s index of Asia-Pacific shares outside Japan gains 0.60%, after refreshing the record high before a few minutes, while Japan’s Nikkei 225 eyes 26,760 with 1.10% intraday profits.

Chinese shares also pay a little heed to -0.5% YoY contraction in the headline Consumer Price Index (CPI) for November whereas stocks in Hong Kong grew past 1.30% even as US President-elect Joe Biden’s incoming National Security Advisor Jake Sullivan said, “deeply concerned” about the arrests and imprisonment of pro-democracy activists in Hong Kong.

Meanwhile, Australia’s ASX 200 adds 0.73% to the daily upside while New Zealand’s NZX 50 cheers a surge in the Q3 Manufacturing Sales, from upwardly revised -12% to +17.3%, with a 1.20% rise. Furthermore, South Korea’s KOSPI rose over 1.30% while following the broad market optimism whereas India’s BSE Sensex is among other gainers marking a below 1.0% upside.

On Tuesday, US Treasury Secretary Steve Mnuchin proposed a higher than the earlier bipartisan proposal of $916 billion figure as an aid package. Although that amount got a rejection from the Democrats, the House is optimistic about reaching the deal soon.

Read: Wall Street Close: Bulls encouraged by covid vaccine progress

Looking forward, optimism concerning the US stimulus and vaccine can help the global equities positive. However, data from the option markets seem to push some of the big banks to turn cautious at the record-high levels.

Read: S&P 500 Futures cheer US stimulus hopes near record high above 3,700

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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