Asian shares were mostly higher Wednesday, ahead of the inauguration of Joe Biden as U.S. president. Japan’s criteria lost early gains as concerns about the rise in coronavirus cases grew.
Japan’s Nikkei benchmark 225 missed early gains to slip 0.4% in morning trading to 28,515.21. Australia’s S&P / ASX 200 added 0.6% to 6,783.20, while South Korea’s Kospi rose 0.5% to 3,109.21. Hong Kong’s Hang Seng added 0.9% to 29,921.79, while the Shanghai Composite rose nearly 0.4% to 3,579.93.
There are growing hopes that Biden’s planned stimulus for the American economy will be further stimulated by measures to curb the pandemic of regional markets.
Although many Asian countries have recovered from the pandemic than European countries and the US, concerns remain high. Major urban areas in Japan, including Tokyo, are in a state of emergency, with an afternoon dinner depressing. Critics say that’s not enough, given that COVID-19-related deaths have been on the rise.
“The Chinese New Year is less than a month away. With COVID infection numbers already rising again in parts of Asia, there are concerns about what the holiday season means for efforts to contain the spread of the virus, ”said Stephen Innes, chief executive. Axi’s global market strategy.
On Wall Street, the S&P 500 rose 30.66 points, or 0.8%, to 3,798.91, pulling in within 1% of its highest set earlier this month. The Dow Jones industrial average added 116.26 points, or 0.4%, to 30,930.52. The Nasdaq conglomerate gained 198.68 points, or 1.5%, to 13,197.18.
About 60% of the companies rose in the S&P index. Technology, communications services and healthcare stock accounted for much of the rally, although companies in the energy sector took the biggest advantage.
Traders continued to offer shares in smaller companies, a sign of confidence in the prospects for future economic growth. The Russell 2000 index rose 27.94 points, or 1.3%, to 2,151.14.
U.S. markets closed on Monday according to Martin Luther King Day.
The gains this week marked a reversal from last week, when stocks ran out of steam after a strong start to the year. Markets have become increasingly optimistic about an upcoming economic recovery as COVID-19 vaccines go ahead and Washington seeks to spur another major round for the economy.
Janet Yellen, Biden ‘s nominee for secretary of the Treasury, is urging Congress to do more to stimulate the economy. In evidence prepared for her confirmation hearing on Tuesday, she said with flat rates close to their lowest levels, “the quickest thing we can do is to take action to reduce the decline. avoid worsening in the short term and scarring for the economy in the long term.
Biden last week released details of a $ 1.9 trillion plan to support the economy, which would include $ 1,400 cash payments for the majority of Americans. Democrats are also pushing for faster rollout of COVID-19 vaccines, minimum wages for workers and enhanced benefits for laid-off workers. The hope is that such a stimulus can carry the economy to a later stage this year, when broader vaccines get life back to normal.
“If most of this is implemented, it suggests a major boost in economic growth as we move into the fourth quarter of this year,” said David Kelly, chief global strategist at JPMorgan Funds. .
The case for more economic stimulus from the government has been rising throughout the day. Disregard reports have been collected showing that the pandemic is growing with more workers applying for jobless benefits and customers feeling less confident.
In energy trading, the U.S. benchmark added 24 cents to $ 53.22 per barrel. Brent crude, the international standard, rose 30 cents to $ 56.20.
In foreign exchange trading, the US dollar slipped to 103.78 Japanese yen from 103.99 yen. The dollar cost $ 1.2142, up from $ 1.2115.