Japan’s Nikki 225 Index reached an almost 30-year high after President Donald Trump signed a $ 900 billion economic aid package Monday, helping to offset uncertainty as governments travelled to fight the epidemic and Opposed trade restrictions that threaten to weigh on global economic activity.
In Tokyo, the Nikkei 225 jumped 1.6% to 27,292.37, trading above 27,000 for the first time since April 1991. The market reached its all-time peak of 38,915.87 on December 29, 1989.
The benchmark was influenced by strong gains in heavy stocks such as Mitsubishi Heavy Industries, which grew 6%, apparel maker Fast Retailing, 2.9% and technology and energy company SoftBank, which grew 3.4%.
Other Asian stocks were also mostly higher.
Hong Kong’s Hang Seng index rose 1% to 26,586.76 and Kospi in South Korea changed slightly to 2,211.20. Australia’s S&P / ASX 200 climbed 0.5% to 6,696.30 and the Shanghai Composite Index closed flat at 3,395.89.
The business is closing since 2020. But after the epidemic has been on hold since March, share prices have been helped by large-scale violations of central bank cash and ultra-low interest rates, making the stock potentially more attractive than other investments Let’s make.
Investors have gained confidence with the rollout of coronavirus vaccination, which they hope will pave the way for a return to normal activity in the coming months.
Driven by gains in technology, communications services and consumer discretionary shares, the S&P 500 climbed 0.9% to 3,735.36 on Monday. Epidemic companies, including restaurants, airlines, and cruise operators, were among the biggest beneficiaries.
Investors welcomed the decision by President Donald Trump to sign a $ 900 billion coronavirus economic aid package as a broad rally, despite their complaints that the $ 600 payment was too low for most individuals. The package also includes $ 1.4 trillion to fund government agencies, reducing the federal government shutdown that would otherwise begin Tuesday.
The Dow Jones Industrial Average rose 204.10 points, or 0.7%, to 30,403.97, a record high. The Nasdaq Composite climbed 94.69 points or 0.7% to 12,899.42 points, a record high. The Russell 2000 index of smaller companies fell 7.70 points, or 0.4%, to 1,996.25 points.
Wall Street had been hoping since last week that Trump would step back from his threat to veto economic legislation, paving the way for more financial aid to hurt individuals and businesses.
The US economy is steadily deteriorating due to widespread coronavirus outbreaks, infections, and hospitalizations so promise more relief for millions of Americans to help reduce uncertainty between travel and trade restrictions in response to a new coronavirus version Does. More contagious.
“Big and optimistic, this is a kind of broad-based optimism, far too good on the vaccine rollout, and an incentive bill to bridge the gap”, said Ross Mayfield, investment strategist at Baird, “It’s really just one The continuation of the broad power that we have seen in the last few months. ”
Stocks also received a seasonal boost, Mayfield said. The market tries to climb the last trading days in December and the first two trading days in January, known as the “Santa Claus Rally”. Since 1950, the S&P 500 index has risen by an average of 1.3% during those seven days.
Among the companies most affected by the epidemic, Monday gained the most. American Airlines grew by 2.6%, Norwegian Cruise Lines by 2.9% and Carnival by 4.2%.
The broad market of technology and communications services stocks accounted for a large slice of the rally. Apple and Facebook climbed 3.6%.
Treasury yields were added. The 10-year Treasury yield, which could affect interest rates on mortgages and other consumer loans, rose from 0.92% to 0.94% late Monday night.
Business is expected to lighten this week, as most fund managers and investors have closed their books for the year. It will be another holiday-shortened week with New Year’s Day on Friday.
In other trades, benchmark US crude gained 25 cents to $ 47.87 per barrel in electronic trading on the New York Merchant Exchange. On Monday, it was down 61 cents to $ 47.62 a barrel. Brent crude rose 23 cents to $ 51.13 a barrel internationally.
The dollar was trading at 103.74 Japanese yen, down from 103.81 yen late on Monday. The euro peaked from $ 1.2214 to $ 1.2234.