Asian shares rallied on Tuesday, setting the stage for world equities to extend their bull run for a 12th consecutive session, as investors banked on a rollout of coronavirus vaccines to keep the global economic recovery on track.
Oil prices jumped to a 13-month high as a deep freeze due to a severe snow storm in the United States not only boosted power demand but also threatened oil production in Texas.
Asia’s surging shares set the way for renewed optimism on global markets.
S&P500 futures were up 0.5% and MSCI’s all country world index (ACWI), which has risen every day so far this month, ticked up slightly.
MSCI’s broadest index of Asia-Pacific shares outside Japan shot up 0.62%, while Japan’s Nikkei rose 1.4% to a 30-year high.
· Japan shares extend gains to close at 30-yr high on recovery hopes
Japanese stocks rose to a 30-year high on Tuesday as progress in the distribution of coronavirus vaccines boosted expectations that the global economy is poised for a strong recovery.
The Nikkei 225 Index ended up 1.28% at 30,467.75, closing at its highest since August 1990.
The broader Topix rose 0.57% to 1,965.08 and at one point hit its highest since June 1991.
Japanese stocks have followed global equity markets higher in a dizzying bull run as money flows to riskier assets in anticipation of a rapid improvement in economic growth and corporate profits, but some analysts worry that recent gains are unsustainable.
· Hong Kong’s Hang Seng index jumps nearly 2% as Asia-Pacific markets rise
Stocks in Asia-Pacific rose in Tuesday trade as markets in mainland China remain closed for the Lunar New Year holiday.
Hong Kong’s Hang Seng index, which returned to trade following holidays in the last few days, jumped 1.81% as of its final hour of trading
Cinema stocks listed in Hong Kong surged, with IMAX China and Alibaba Pictures up more than 30% each. Reuters reported Tuesday that Chinese box offices set a revenue record for the week beginning Feb. 11, citing data compiled by online ticketing platform Maoyan Entertainment.
· European markets nudge higher as recovery hopes lift global stocks
European markets opened modestly higher Tuesday as hopes of an impending economic recovery underpinned by persistently low interest rates continue to drive risk-on trade.
The pan-European Stoxx 600 climbed 0.3% in early trade, with oil and gas stocks climbing 1.4% to lead gains while the media sector slipped 0.3% lower.
European shares received a strong handover from Asia-Pacific, where markets broadly advanced during Tuesday’s trade, led by stocks in Hong Kong and Japan.
Stateside, futures tied to the major indexes are indicating robust gains on Wall Street at Tuesday’s open as trading recommences following Monday’s Presidents’ Day holiday.
Reference: CNBC, Reuters
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