- Asian shares track S&P 500 Futures to the north while refreshing record tops.
- Receding covid infections, vaccine optimism back the risk-on mood.
- Trump’s acquittal frees US congress for stimulus talks.
- RBA minutes, comments from Japan and the US-Iran tussle gain a little success to tab the sentiment.
Asian equities stay on the front foot while refreshing the all-time high during the early Tuesday. In doing so, the risk barometer aptly portrays the market’s upbeat mood amid the latest reduction in the coronavirus (COVID-19) figures at the epicenters and speeding global immunization. Also favoring the mood could be the hints suggesting nearness to the much-awaited US fiscal help as well as signals for easing of virus-led lockdowns.
Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises 0.57% to chase the 12-day bull-run of global equities. At the same time, Japan’s Nikkei 225 refreshes a 30-year high, currently up 1.9% to 30,654, as BOJ Governor Haruhiko Kuroda talks down the chatters concerning the excessive rise of the stocks. The optimism portrayed by Japanese traders also takes clues from Finance Minister Taro Aso’s favor for the extended fiscal relief.
Moving on, Australia’s ASX 200 gains 0.60% even as the RBA minutes struck a dovish tone while marking the need for “Very significant” monetary support. The Aussie benchmark could have taken clues from the Reuters’ piece suggesting Victoria’s need for easing the virus-led restrictions. New Zealand’s NZX 50 followed the suit amid no new virus numbers at home and the nearness to begin vaccinations whereas traders from Hong Kong began their trading week on a positive note.
South Korea’s KOSPI, Indonesia’s IDX Composite and India’s BSE Sensex are extra examples of the broadly risk-on mood that followed the S&P 500 Futures, up 0.68% now. Also pleasing the market bulls are the US Treasury yields and upbeat commodities, not to forget the fresh monthly low of the US dollar index (DXY).
While cheering the broad optimism, traders in Asia-Pacific seems to have ignored fears of virus variants and likely escalation in the US-Iran tussle following the killing of the American worker in Iraq.
Looking forward, the US traders’ return from the extended weekend will be eyed amid a lack of major data/events for fresh impulse.
Share
