- Asian shares refresh record top, Japan’s Nikkei rallies to highest since 1990.
- Successful covid vaccine rollout, US stimulus hopes favor bulls.
- Japan’s Q4 GDP, oil’s rally and the UK’s likely easing of lockdown add to the upside momentum.
- Lockdown in New Zealand and Australia probe bulls as traders from China, Hong Kong and the US enjoy holidays.
Asian equity bulls keep the reins as receding coronavirus (COVID-19) numbers and upbeat vaccinations join Japan’s welcome GDP print. While portraying the optimism, MSCI’s index of Asia-Pacific shares outside Japan refreshes the all-time high whereas Japan’s Nikkei 225 rallies to a new top in over two decades during the early Monday’s trading.
Japan’s preliminary reading of the Q4 GDP rose past-2.3% forecast to 3.0% QoQ which helped Economic Minister Yasutoshi Nishimura to convey the Asian major’s recovery potential. Also favoring the mood in Tokyo could be preparedness to kick-start the covid vaccinations from this week.
On the same line, the UK’s ability to match its vaccine jab target of 15 million backs PM Boris Johnson to tease the easing of lockdown restrictions. Further, New Zealand’s no fresh covid cases, after the initial three that recalled activity restrictions, as well as vaccine updates from Australia also portray the risk-on mood.
US President Joe Biden’s repeated push for the $1.9 trillion covid relief stimulus and a gradual reduction in the broad infections add to the market optimism even as the World Health Organization (WHO) warns over covid strain re-infections.
Amid these plays, Australia’s ASX 200 and South Korea’s KOSPI gain over 1.0% while Indonesia’s IDX Composite and India’s BSE Sensex print around 0.80% run-up by press time. Further, WTI oil crosses $60.00 as global traders eye economic recovery amid reduction in Saudi Arabian output and tensions in the Middle East. On the contrary, New Zealand’s NZX 50 bucks the trend with near 0.60% intraday losses amid quiet trading.
Considering the American markets’ off, coupled with an absence of major data/events during the European session, equity traders may remain hopeful of further upside. Though, a lack of liquidity can portray wild ticks in case of adverse releases. Hence, traders should remain cautiously optimistic during the early start of the week.
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