Asian stocks hold on to gains as Fed worries ease

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  • Asian scholarships: https://tmsnrt.rs/2zpUAr4
  • Pfizer / BioNTech vaccine obtains full approval
  • Oil prices rebound after 5% rebound on Monday
  • Battered Chinese tech stocks advance for second session

SINGAPORE, Aug. 24 (Reuters) – A rebound in China’s tech sector pushed up Asian stocks on Tuesday.

Nasdaq and S&P 500 futures were both up 0.15%, while European stock markets were ready for a strong open, Euro Stoxx 50 futures were up 0.19% and futures were up 0.19%. German DAX gaining 0.16%.

The dollar was healing its wounds after its largest single-day drop since May, which led to a 5% rise in oil prices on Monday.

COVID-19 infections caused by the highly contagious Delta variant have fueled concerns about recovery from the global health crisis.

“The market is hoping that the Delta variant will prevent the Fed from doing anything too aggressive or too soon,” said Vasu Menon, senior investment strategist at OCBC Bank Wealth Management.

The largest MSCI index for Asia-Pacific stocks outside of Japan (.MIAPJ0000PUS) rose 1.3%, with the Japanese (.N225) and South Korean (.KS11) indices jumping 1%. Australian stocks (.AXJO) rose 0.2% and Taiwanese stocks (.TWII) rose 0.6%.

“It’s clear this tug-of-war won’t end anytime soon. But the silver lining is that there is cautious optimism in the market and there is also a lot of liquidity hanging around,” Menon said.

Overnight data showed strong, although a slowdown in service and manufacturing activity in Europe, while growth in business activity in the United States slowed for a third consecutive month, the spread of the Delta virus variant having taken its toll. Read more

Chinese markets (.CSI300) advanced 1.1% as technology stocks (.HSTECH) prolonged their rally after suffering hard knocks in recent weeks over regulatory concerns.

The strength of Wall Street has supported sentiment in Asia. The Nasdaq (.IXIC) closed at a record high Monday after the United States Food and Drug Administration fully approved the COVID-19 vaccine developed by Pfizer (PFE.N) and BioNTech, a move that could speed up inoculations in the USA . Read more

Global markets were battered last week by concerns the Fed was getting closer to cutting its stimulus measures, with the main Asian index falling 4.8% to be down 3% for the year.

Improving sentiment overnight caused the dollar to fall more than 1% against its Australian and Canadian counterparts as well as the Norwegian krone and Swedish krona.

“A positive risk environment has pushed flows off the dollar,” said Chris Weston, head of research at Melbourne-based brokerage Pepperstone, adding that positive comments from analysts on oil and cyclical stocks had also contributed to the downside. general atmosphere.

The dollar appreciated 0.1% against the yen to 109.79. The euro was down 0.0% on the day to 1.1741, after losing 1.1% in one month, while the dollar index, which tracks the greenback against a basket of currencies other major trading partners, was up to 93,005.

Last week, the dollar index hit a nine-month high on bets that the Fed would begin to move away from its accommodative monetary policy, but that view began to change on Friday when the Fed chairman of the Dallas’ Robert Kaplan has said he may reconsider his hawkish stance if the virus damages the economy. Read more

Now, investors are less confident that Fed Chairman Jerome Powell’s speech in Jackson Hole this week will indicate a timeline for the liquidation of the Fed’s bond buying program.

The benchmark 10-year Treasury yield rose to 1.2684%.

In commodities markets, Brent crude oil futures rose 0.4% to $ 69 a barrel after advancing more than 5% on Monday, as a weaker dollar and global stock markets Solids boosted crude after seven sessions of decline.

Gold prices fell but remained above the key psychological level of $ 1,800.[GOL/[GOL/[GOL/[GOL/

Reporting by Anshuman Daga in Singapore; Additional reports by Tom Westbrook; Editing by Shri Navaratnam and Sam Holmes

Our standards: Thomson Reuters Trust Principles.


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