Asian markets expand benefits as sentiment improves

(Reuters) – Asian stock markets extended gains Tuesday on more optimism about a stimulus package and a global economic recovery, while retail investors withdrew from GameStop and the renewed interest in money.

MSCI’s share of Asia Pacific stock outside Japan rose 1.25% mid-morning, building on Monday’s rise. The Hong Kong Hang Seng Index and the CSI300 Index opened the China benchmark 1.7% and 0.33% higher, respectively. Nikkei 225 from Japan gained 0.67%.

Markets were buzzing ahead of talks Tuesday between U.S. President Joe Biden and Republican senators on a new COVID support bill. The GOP’s $ 618bn stimulus plan released early Monday was around a third the size of the President’s proposal. Democrats later on Monday posted a $ 1.9 trillion budget ratio in a move toward Republicans.

“The debate (around the incentive package) will be very interesting. Markets will follow, ”said Kyle Rodda, market analyst at IG. “(However) markets have been priced with the introduction of an incentive package in the future. ”

Australia’s S&P / ASX 200 benchmark added an additional 1.23%, as the country’s central bank is expected to maintain its current policy position when it releases the outcome of the meeting. their boards Tuesday at 3:30 GMT.

South Korea’s KOSPI also won, adding 2.3%, as the country’s ruling party reads another round of COVID-19 money vouchers and an additional budget.

Institutional investors are still reeling from the retail trading frenzy that has fueled GameStop Corp. and other so-called meme stocks in recent sessions against their financial fundamentals.

Spot silver prices fell on Tuesday, falling more than 1% to $ 28.30 in early trading, as some muscle traders led interest in the precious metal cool.

On Monday, amateur investors who have been popping up on social media sites like Reddit and Twitter posted their views on money, driving up mining stocks around the world and sending precious metal retailers to scramble for bars and coins to meet demand.

Spot gold rose 0.12% to $ 1,862.36 an ounce Tuesday. U.S. gold futures fell 0.04% to settle at $ 1,860.1 an ounce.

Brent crude went up 0.75% at $ 56.77 a barrel. The U.S. crude recorded the same gain to $ 53.96 Tuesday morning as investments and rising fuel demand fell as a result of a major snowstorm in the Northeastern United States raised prices.