NEW YORK, Jan 8 ― Asian stocks opened higher today, with Japan hitting a three-decade high as investors looked beyond rising coronavirus cases and political unrest in the United States and bet on an economic recovery later in the year.
Futures for the S&P 500 jumped 1.48 per cent and Japan's Nikkei 225 rose 0.84 per cent, hitting its highest level since August 1990.
The broadly upbeat mood came after Wall Street hit record highs on Thursday while bond prices fell as markets bet a new Democrat-controlled government would lead to heavy spending and borrowing to support the US economic recovery.
“We're sure to see a synchronised global recovery in the second half of this year,” said ING analyst Carsten Brzeski.
“Right now, there's lots of concern about the virus and noise surrounding the vaccine. But we need to take a slightly longer view.”
Australia's S&P/ASX 200 gained a more moderate 0.16 per cent after that nation's Queensland state enforced a three-day lockdown in its capital following the discovery of a case of the more contagious UK variant of Covid-19.
Hong Kong's Hang Seng index futures lost 0.02 per cent after reports that the Trump administration was considering banning US entities from investing in an expanded list of Chinese companies in the waning days of the presidency.
US government officials have begun weighing removing President Donald Trump from office before President-Elect Joe Biden's inauguration date of January 20 after he incited a violent riot against at the US Capitol building.
Yesterday, the Dow Jones Industrial Average rose 0.69 per cent, the S&P 500 gained 1.48 per cent and the Nasdaq Composite added 2.56 per cent. MSCI's gauge of stocks across the globe gained 1.18 per cent.
Benchmark yields hit their highest level in 10 months as US Treasuries continued to sell off. Benchmark 10-year notes last fell 12/32 in price to yield 1.0812 per cent. The 30-year bond last fell 27/32 in price to yield 1.859 per cent.
The dollar also strengthened on hopes of a meaningful economic recovery later this year.
The dollar index rose 0.53 per cent against a basket of currencies to 89.785 with the euro down 0.43 per cent to US$1.2272 (RM4.96). Bitcoin topped US$40,000 for the first time yesterday, as the digital currency continued to be in high demand from institutional and retail investors alike. Bitcoin was last up 6.1 per cent at US$39,100 but market watchers say a pull back is likely.
Strength in the dollar weighed on gold prices.
Spot gold fell 0.3 per cent to US$1,913.87 per ounce but US gold futures inched 0.3 per cent higher to settle at US$1,913.60.
Oil traders continued to focus on Saudi Arabia's pledge to deepen production cuts.
Brent crude settled up 8 cents to US$54.38 a barrel after touching US$54.90, a high not seen since before the first Covid-19 lockdowns in the West. US West Texas Intermediate (WTI) settled up 20 cents to US$50.83, after hitting a session high at US$51.28. ― Reuters
Source: Malay Mail
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