Asian stocks posted strong gains on Wednesday, following record highs for major indices on Wall Street.
Benchmarks rose more than 1% in Tokyo, Hong Kong, and Seoul. In Shanghai, it fell short after China reported that its consumer price index slipped 0.5% in November compared to a year earlier.
Economists said the country’s first malfunction since 2009 was not a cause for danger. The overall measure was dragged down by a drop in food prices due to improved pork supplies, which have been disrupted while officials fight the outbreak of African boar fever, while economic activity derived in the form of other activities Coronovirus is cured by the epidemic.
“Given the recent volatility in food and energy prices, inflation figures are less than eye-light,” Capital Economics said in a comment, citing that core consumer price inflation, volatile food, and energy prices Leaving were stable at 0.5. % Since a year ago. Strong demand was also driving a recovery in manufactured goods prices, it said.
Japan released figures showing strong machinery orders in October, indicating that its economy was improving.
Tokyo’s Nikkei 225 index rose 1% to 26,743.52, while Hang Seng in Hong Kong rose 1.2% to 26,609.17. In South Korea, Kospi jumped 1.3%. Australia’s S&P / ASX 200 advanced 0.8%, while the Shanghai Composite Index slipped 0.1% to close at 3,407.41.
Overnight, the S&P 500 rose 0.3%. The tech-heavy Nasdaq also hit record highs. Investors were encouraged to cheer on the news on coronavirus vaccines and reported that the law and the White House were making progress towards new stimulus for the American economy.
The delivery of one or more coronavirus vaccines could likely begin in the US in the coming week, which has put investors in a buying mood fueling optimism about the economic recovery next year.
As in the U.K. Becomes the first Western country to launch a mass vaccination program, U.S. Health regulators issued positive initial reviews of a COVID-19 vaccine developed by American drugmaker Pfizer and Biotech in Germany. The Food and Drug Administration will decide on Thursday whether to green-light the distribution of vaccines developed by Pfizer and BioNotech. The likely distribution of the vaccine is months away.
The S&P 500 rose 10.29 points to 3,702.25 points. The Dow Jones Industrial Average rose 0.4% to 30,173.88. The tech-heavy Nasdaq added 0.5% to 12,582.77, marking its fourth straight record high.
Small-company stocks rose much more than the rest of the market, a sign that investors are feeling more optimistic about the economy. The Russell 2000 index climbed 1.4% to 1,917.78.
The need for a vaccine has become more urgent to increase the incidence of coronavirus worldwide. The virus has claimed over 1.5 million lives, including more than 284,000 in the US, the highest toll of any country.
Governments around the world have tightened restrictions on businesses to stem the latest increase in cases, raising concerns about a possible economic decline.
It kept investors focused on Washington and the prospect of another round of aid for Americans and the hardest hit by the trade epidemic.
At the end of Tuesday, Treasury Secretary Stephen Menuchin said he had offered a $ 916 billion package to House Speaker Nancy Pelosi, which adds a $ 600 direct payment to most Americans.
Congress is mired in a partisan deadlock over the size and scope of any additional aid to help people and businesses make a financial impact. The economy is showing signs of a stagnant recovery as the virus became widespread nationally last month, including slow growth in the US.
“With the markets beginning to exhibit some year-end fatigue, any incentive holiday stocking stuff will come at a most welcome time and ensure that the well-subscribed equity markets end the year on a positive note Will cross the finishing line, ”Stephen Ines Axi said in a comment.
The yield on the 10-year Treasury fell from 0.92% to 0.94% late Tuesday.
In other trades, benchmark US crude oil plunged from 12 cents to $ 45.48 per barrel in electronic trading on the New York Mercantile Exchange. It was down 16 cents to $ 45.60 a barrel.
Internationally, Brent crude dropped 11 cents to $ 48.73 a barrel.
The dollar was trading at 104.14 Japanese yen, down from 104.19 yen late on Tuesday. The euro fell from $ 1.2103 to $ 1.2122.