· Asian equities, commodities gain on economic recovery trade
Asian stocks rose on Wednesday, tracking modest Wall Street gains, as expectations that a vaccine will eventually win the battle against the coronavirus fuelled recovery hopes, while tight supply expectations pushed oil prices to a one-year high.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.61%, while Japan’s Nikkei 225 rose 1.12%.
South Korea’s KOSPI gained 1.05%. Australia’s S&P/ASX 200 reversed losses and added 0.18%.
U.S. stock futures edged up by 0.18%.
Treasuries extended their rally, pulling benchmark 10-year yields further away from the highest in almost a year and causing the yield curve to flatten slightly.
Euro Stoxx 50 futures fell 0.03%, German DAX futures were up 0.03% and Britain’s FTSE futures were up 0.18%, pointing to a subdued start to European trade.
Investors are betting that the incoming Biden administration would ramp up U.S. distribution of coronavirus vaccines and spend big on more stimulus, which will contribute to a global economic recovery and increased demand for commodities, analysts say.
Hugh Young, head of Asia Pacific at Aberdeen Standard Investments, said he expected the investor interest in Asia seen in the second half of 2020 to be sustained this year.
· Japan stocks higher at close of trade; Nikkei 225 up 1.04%
Japan stocks were higher after the close on Wednesday, as gains in the Paper & Pulp, Railway & Bus and Real Estate sectors led shares higher.
At the close in Tokyo, the Nikkei 225 rose 1.04% to hit a new 5-year high.
· China stocks mixed on profit-taking; consumer, healthcare down
China stocks were mixed on Wednesday, with investors taking profits from consumer and healthcare shares after the blue-chip index hit its 13-year high in the previous sessions.
At the midday break, the Shanghai Composite index was down 0.08% at 3,605.33 points, but the blue-chip CSI300 index was up 0.09%.
The blue-chip index’s consumer staples sector slipped 0.82%, and the healthcare sub-index was down 1.25%.
The CSI300 index snapped week-long gains from the start of 2021, and kept touching its 13-year high in recent trading sessions fuelled by accommodative monetary policies this year hinted by the central bank, and stable economic data.
The overall market sentiment on Wednesday was also dented by the resurgence of coronavirus cases in the mainland, as China recorded the biggest daily jump in more than five months, and placed four northern cities in lockdown.
Energy supply-wise, Chinese ports and marine safety authorities are on high alert as an expansion of sea ice makes it tougher for ships to berth and discharge at key energy product import terminals along the coast of northern Bohai Bay, Reuters reported.
The smaller Shenzhen index was down 0.55%, the start-up board ChiNext Composite index was weaker by 0.83% and Shanghai’s tech-focused STAR50 index edged up 0.06%.
Chinese H-shares listed in Hong Kong fell 0.16% to 11,199.59, while the Hang Seng Index was down 0.03% at 28,268.80.
· European markets mixed with vaccine rollout and containment measures in focus
European stocks were mixed Wednesday morning as investors monitor vaccine rollouts and coronavirus containment measures.
The pan-European Stoxx 600 hovered just above the flatline in early trade, with oil and gas stocks adding 1.1% to lead gains while banks shed 0.8%.
European markets are keeping track of coronavirus developments in the region, with governments looking to accelerate, or to keep good momentum, in their coronavirus vaccination drives. In the meantime, lockdowns have been extended in Germany and the Netherlands.
The local Chinese authorities in regions near Beijing are stepping up restrictions on social activity following a rise in new coronavirus cases.
Reference: CNBC, Reuters, Investing
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