U.S. STIMULUS, VACCINE PROGRESS ENCOURAGE EQUITY BULLS
Asian shares and US stock futures rose on Wednesday, February 3, 2021, as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programs accelerated, Stanley White and Imani Moise reported for Reuters.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.51%. Australian stocks jumped by 1.12%. Shares in China fell 0.06%. Japan’s Nikkei added 0.66%. Shares in Seoul rose by 0.44%. E-mini futures for the S&P 500 rose 0.36%.
Wall Street rallied on Tuesday on renewed hopes for US President Joe Biden’ proposed $1.9 trillion COVID-19 aid bill as the Senate took steps to allow Democrats to pass Biden’s package without Republican support.
The Dow Jones Industrial Average rose 1.57% on Tuesday, the S&P 500 gained 1.39%, and the Nasdaq Composite added 1.56%. MSCI’s gauge of stocks across the globe gained 0.18%.
The US Treasury yield curve continued to steepen in Asian trading, reflecting expectations for more fiscal spending and growing economic optimism.
The roll-out of vaccines in many countries is gathering pace, earnings season in the US and Japan has so far been favorable, and oil prices are at their highest in a year, which are all positive signs for the global economy.
“All the ingredients for a rapid recovery from Q2 onwards are getting sweetly baked into the reopening party cake,” said Stephen Innes, chief global markets strategist at AxiCorp Financial Services.