Asian stocks were mostly higher in Monday trading, as concerns about the epidemic maintained optimism despite a rally on Wall Street that closed last week.
Investors who have been cautious on upcoming earnings reports are accumulating cash in recent gains, helping Japanese stocks pull lower. Tokyo’s benchmark Nikkei 225 index fell 0.3% to close at 23,543.95. Large exporters entered some of the largest losses, with Toyota Motor Corp falling 0.6% and Honda Motor Company shedding 1.8%.
Japan reported a 0.2% increase in core private sector machinery orders in August, contrary to forecasts for a decline. But overall, economic indicators remain weak.
Other regional benchmarks were rising. South Korea’s Kospi rose 0.6% to 2,406.87. Australia’s S&P / ASX 200 gained nearly 0.2% to end at 6,113.40. Hong Kong’s Hang Seng jumped 1.3% to 24,434.17, while Shanghai Composite rose 1.7% to 3,325.98.
Referring to central bank meetings in South Korea, Indonesia and Singapore, Jingi Pan, IG’s senior market strategist in Singapore, said, “While U.S. politics remains at the center stage, Asia releases and monetary policy meeting decisions.” A link to it will be seen. ”
Indicators outside China, such as trade and inflation readings, also remain on investors’ minds.
Wall Street closed its best week in three months on Friday as talks on Capitol Hill encouraged investors with the aim of providing more support to the ailing US economy. The S&P 500 rose 0.9% to 3,477.14, its third straight gain. The benchmark index ended the week with a gain of 3.8%, its strongest rally since early July.
The signs were not promising until late Sunday. A new White House Coronavirus aid proposal received bad reviews from both ends of the political spectrum. House Speaker Nancy Pelosi dismissed the Trump administration’s biggest plan as “one step forward, two steps back”. Republicans who control the Senate are dismissing it as too expensive and a political loser for conservatives.
According to a Republican aide’s plan, the White House on Friday increased its proposal from $ 1.6 trillion to $ 1.8 trillion. Pelosi’s most recent public proposal was $ 2.2 trillion, although it included a business tax increase that was not for Republicans.
Concerns remain that Congress and the White House have not provided much support for the economy as it concerns the impact of the epidemic and that stock prices had risen too high during the summer.
Economists say the approach is critical without such support, and the Federal Reserve chair has said that it will be necessary again and again.
The Dow Jones Industrial Average crawled into positive territory for the year, rising 0.6% to 28,586.90. The Nasdaq Composite climbed 1.4% to 11,579.94, while the Russell 2000 index of small company stocks rose 0.6% to 1,637.55.
Other major challenges remain, chief among which is the trunovirus epidemic, highlighted by Trump’s own COVID-19 diagnosis.
In Energy Trading, Benchmark U.S. Crude lost 35 cents to $ 40.25 per barrel in electronic trading on the New York Mercantile Exchange. It dropped 59 cents to $ 40.60 a barrel on Friday.
Internationally, Brent crude fell 37 cents to $ 42.48 a barrel.
The US dollar rose to 105.54 yen from 105.53 yen last Friday. The euro slipped from $ 1.1824 to $ 1.1821.