SYDNEY (Reuters) – Asian stocks faltered on Monday amid fears that problems with the launch of vaccines combined with new strains of COVID-19 will delay a global economic recovery that has already been incorporated into rich market assessments.
The broader MSCI index for Asia Pacific stocks outside Japan fell 0.4% after four consecutive sessions of losses. Japan’s Nikkei jumped 0.4% after falling almost 2% on Friday.
Futures for the S&P 500 lost an additional 0.7% in heavy trade, while NASDAQ futures fell 0.9%.
Resellers were also cautiously awaiting new developments in the battle that made headlines among retail investors and short equity funds.
US hedge funds bought and sold most of the shares in more than 10 years amid major swings in GameStop Corp, according to an analysis by Goldman Sachs Inc.
The conversation on Monday was that silver was the new target for the retail audience, as the metal jumped 5.7% to a six-month high.
However, many analysts see this fun episode as a secondary spectacle compared to the signs of loss of momentum in the United States and Europe, as coronavirus blocks attack.
In fact, a survey by China on Sunday showed that manufacturing activity grew at the slowest pace in five months in January, as restrictions affected some regions.
News of vaccine launches has also not been positive, mainly due to doubts about whether they will work on new strains of COVID.
“It is these considerations, not what is happening with a video game retailer on a daily basis, that weighs on risky assets,” said John Briggs, global head of strategy at NatWest Markets. “Most of the market assessments, the risk in particular, are premised on the fact that we can see a light at the end of the COVID tunnel.”
Doubts also arose about the future of President Joe Biden’s $ 1.9 trillion aid package, with 10 Republican senators calling for a $ 600 billion plan.
The nervousness in the shares caused only a brief ripple in the bonds, with Treasury yields actually rising at the end of last week, perhaps reflecting the wave of ongoing loans.
A record $ 1.11 trillion in gross Treasury issues is scheduled for this quarter, compared to $ 685 billion in the same period last year.
As of Monday, US 10-year earnings remained at 1.07% and close to the top of the last 10 months at 1.177%.
Higher yields, combined with more cautious market humor, have seen the safe haven dollar steady above its recent lows. The dollar index stood at 90.628, after jumping from a low of 89.206 in early January.
The euro fell by $ 1.2121, well below its recent peak of $ 1.2349, while the dollar held steady at 104.74 yen.
Gold followed up to $ 1,853 an ounce, but repeatedly stagnated in resistance at around $ 1,875. [GOL/]
Concerns about global demand have kept oil prices in check. US crude fell by 30 cents to $ 51.90 a barrel, while Brent crude futures fell by 20 cents to $ 54.84. [O/R]
Editing by Shri Navaratnam