Asian stocks, oil fluctuate with hopes of economic revival By Reuters

By Swati Pandey

SYDNEY (Reuters) – Asian stocks hovered close to record highs on Monday, as oil approached $ 60 a barrel, in the hope that a $ 1.9 trillion COVID-19 aid package will be approved by US lawmakers later this month, when coronavirus vaccines are being launched globally.

The broader MSCI index for Asia-Pacific stocks outside Japan was up 0.3% to 717.2, after rising to 730.16 last month.

rose 2%, while Australian stocks advanced 0.8%, led by technology and mining stocks. Chinese stocks were slightly positive, with the blue chip chip CSI300 up 0.1%.

E-mini futures added 0.4% at the start of the Asian trading session.

Hopes for a faster economic revival and restrictions on supply by the OPEC producer group and its allies have brought oil to its highest level in a year, which has dropped near $ 60 a barrel.

Global stock markets have reached record levels in the past few days, hoping for a faster economic recovery, led by successful vaccine launches and expectations of a major pandemic relief package in the U.S.

On Friday, the Nasdaq and S&P 500 set historical records with stronger-than-expected corporate results in the fourth quarter, and companies were on track to report first-quarter profit growth rather than decline.

The hikes occurred even when US data painted a bleak picture of the country’s labor market, with payroll rising by 49,000, half of what economists expected.

The weak report spurred pressure for more stimuli, underscoring the need for lawmakers to act on President Joe Biden’s $ 1.9 trillion COVID-19 aid package.

Biden and his Democratic allies in Congress moved forward with their stimulus plan on Friday, when lawmakers approved a draft budget that will allow them to move forward in the coming weeks without Republican support.

US Treasury Secretary Janet Yallen predicted that the United States would achieve full employment next year if Congress approved its support package.

“It is a big bet, given full employment is 4.1%, but it will fall well in the market at a time when the vaccination program is being implemented efficiently in several countries,” said Chris Weston, chief strategist Melbourne from Pepperstone.

Expectations of a US economic recovery did not boost the dollar, “because this shift in the outlook is seen by the market as part of a global recovery,” wrote Westpac economists in a note.

“Investors, therefore, prefer to take risks and therefore less value the security of the US dollar.”

In fact, the US dollar came out of a four-month high against the Japanese yen, ending at 105.49.

The euro became a little weaker after rising 0.7% on Friday, to a week-high of $ 1.2054. The last one cost $ 1.2034.

The risk-sensitive Australian dollar fell from a week-high to $ 0.7675.

In commodities, it rose 59 cents each to $ 59.93 and $ 0.57.44, respectively.

The US rose 0.1% to $ 1,815.4 an ounce.