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  • Asian shares reverse early day losses as market sentiment shifts from chatters over silver, at least for now.
  • Jump in vaccinations, hopes of US stimulus battle lockdown in Perth and China’s downbeat PMIs.
  • Aussie PM shows readiness to stay to remain connected with China, EU refrains from barring vaccine exports in the bloc.

Although social media chatters over silver initially probes risks, Asian stocks regain upside momentum, backed by coronavirus (COVID-19) vaccine optimism and expectations of the US stimulus, during early Monday. The mood could also be related to soothing tension between Australia and China, as well as the European Union (EU) and the UK.

Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises 1.20% while Japan’s Nikki 225 copies the move before Monday’s European session. Stocks in China and Australia are also up, with the latter rising 0.90% by press time, but those from New Zealand remain sober with 0.05% intraday losses. It’s worth mentioning that Indonesia’s IDX Composite and South Korea’s KOSPI are nearly 2.0% up whereas India’s BSE Sensex eyes annual budget with 0.5% gains by the time of the press.

With over 600,000 jabs a day, the UK inched closer to its target of immunizing the Britons. Israel and the United Arab Emirates (UAE) are also among the nations that are up on the vaccine drive. This joins with the declining numbers of the covid infections to add to the market’s upbeat tone.

Also favoring the mood could be comments from Australian PM Scott Morrison who said, “Australia remains committed to engagement with China.” Additionally, Brussell’s refrain from activating Article 16 and comments favoring further vaccines in the region also supported the market bulls.

Furthermore, market updates that 10 Republican senators urging a $600 billion plan for the US, per Reuters, were derailed after US President Joe Biden pushed for a talk with Republicans over the much-awaited aid package, expectedly around $1.9 trillion.

Alternatively, traders kept propelling silver while taking clues from Reddit and other social media platforms suggesting silver to follow Gamestop and the likes. This also triggers fears that the trading regulators will have an additional role to play and hence challenges to the market can’t be ruled out. The rumors over silver propelled it to a multi-month high while pushing multiple bourses to turn down orders. It should be noted that a five-day lockdown in Australia’s Perth and China’s downbeat PMI numbers from January also weigh on risks.

Moving on, global market players will keep their eyes on the monthly activity numbers for intermediate moves but major attention will be given to the social media platform chatters, which have recently propelled notable moves.