Stocks rise while Biden transition, vaccine improvement lift confidence
25 November, 2020
Asian shares climbed about Tuesday (Nov 24) after USA President Donald Trump stated he no more opposed government aid for Joe Biden's transition group, with markets also buoyed by COVID-19 vaccine news.
The upbeat backdrop helped MSCI's broadest index of Asia-Pacific shares outdoors Japan advance 0.15 %.
Japan's Nikkei jumped 2.48 % - hitting a 29-year high - while Seoul's KOSPI was 0.74 % higher.
Tokyo marketplaces were closed on Mon for a national getaway, so the Tuesday rise was partly expected after Monday's positive vaccine news and rises on different bourses worldwide.
Australia's S&P/ASX 200 was 1.1 % more robust, touching its highest level in nearly nine months, with energy stocks leading the pack.
Chinese blue-chips and Hong Kong's Hang Seng were outliers, however, edging downwards 0.75 % and 0.08 % respectively.
"The energy vacuum in Washington looks to be sucking fewer life from the markets following the General Provider Administration (GSA) gave the nod to Biden as the obvious winner of the US election," said Stephen Innes, chief global market segments strategist at Axi, in an email.
Shortly prior to the opening bell in Tokyo, Trump tweeted that the GSA should start releasing federal funds and resources to get started on a transition, ending major uncertainty, although Trump has but to concede defeat in the election.
"Nevertheless, in the best fascination of our Country, I am recommending that (GSA administrator) Emily (Murphy) and her team carry out what should be finished with regard to initial protocols, and have told my workforce to accomplish the same," Trump tweeted.
The Tokyo market had been gearing up for a solid open since it returned to action after a three-day weekend, where international market segments surged on positive news about vaccines.
Intercontinental investors have cheered current information that British drugs group AstraZeneca and the University of Oxford will seek regulatory approval because of their coronavirus vaccine, following similar announcements in the Pfizer-BioNTech and Moderna vaccines.
Oil rates edged up found in Asian morning trade, building on healthy benefits the previous evening sparked by the positive vaccine news.
US crude advanced 0.14 % to US$43.12 per barrel and Brent was in US$46.10, up 0.09 % on Tuesday, while an index of commodity prices touched its highest level since early March.
The yield on the benchmark 10-year notes rose slightly to 0.8684 %.
Place gold fell to US$1,827.01 an ounce while US gold futures dropped 0.46 % to US$1,829.30 an ounce.
Tokyo players as well welcomed the rebound of the US dollar.
Okasan Online Securities said in an email to clients: "The Tokyo industry was likely to visit a specialized rebound as investors were likely to cheer benefits on US shares and also the depreciation of the yen (to the dollar) around the 104-level."
Overnight, the Dow Jones Industrial Common gained 1.1 per cent to close at 29,591.27.
The broad-based S&P 500 advanced 0.6 % to 3,577.59, as the tech-rich Nasdaq Composite Index added 0.2 % to close at 11,880.63.
Players in Tokyo might be eyeing a two-day check out to Japan by Chinese foreign minister Wang Yi, as the two Asian giants conduct delicate diplomatic exchanges.
Japan and China recently signed a major Asia-wide free-trade contract called RCEP, boosting China's economical impact. But their relations happen to be seriously influenced by tensions between China and the US.
In Tokyo early on trading, exporters benefitted as the yen headed lower, like the auto sector.
Toyota rose 1.92 % to 7,493 yen, Nissan added 2.61 per cent to attain 498.5 yen and Honda rose 3.02 % to 3,067 yen.
Sony added 2.04 % to attain 9,423 yen while Panasonic rose 2.4 % to at least one 1,109.5 yen.
Construction equipment maker Komatsu, which rewards heavily from Chinese demand, rose 2.62 % to 2,584.5 yen.
SoftBank Group rose 1.48 % to 6,849 yen.
Japan Airlines surged 2.56 % to at least one 1,965 yen, while rival ANA Holdings fell 3.93 per cent to 2,432.5 yen.
Source: www.channelnewsasia.com
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