By Gina Lee
Investing.com – Asia Pacific stocks were up on Tuesday morning, starting the month on a high note despite U.S. shares closing November by slipping from record highs.
“U.S. markets were a little bit lower, that’s what was holding us back a little bit,” Pepperstone head of research Chris Weston told Reuters.
But he added, “people are pretty optimistic for a good 2021.”
China’s Shanghai Composite was up 0.29% by 10:03 PM ET (2:03 AM GMT) while the Shenzhen Component inched up 0.09%. Data released earlier in the day showed that the Caixin manufacturing Purchasing Managers Index (PMI) grew 54.9% in November, above the 53.5% in forecasts prepared by Investing.com and October’s 53.6% growth.
These numbers come as Monday’s manufacturing and non-manufacturing PMIs also beat expectations, indicating that China is continuing on its path towards economic recovery from COVID-19. The Caixin services PMI is due later in the week.
Hong Kong’s Hang Seng Index was up 0.37%. The spike in the number of COVID-19 cases will see stricter social distancing measures in the city that will come into effect on Wednesday, including dining restrictions and most civil servants working from home.
Japan’s Nikkei 225 rose 1.39% and South Korea’s KOSPI gained 1.13%.
In Australia, the ASX 200 soared 1.34%, with the Reserve Bank of Australia widely expected to hand down an unchanged policy decision when it convenes later in the day.
Investor confidence remains high after Moderna Inc (NASDAQ:MRNA) announced plans on Monday to request clearance for its candidate mRNA-1273 in the U.S. and Europe, with the company’s shares soaring up to 20%. Meanwhile, Pfizer Inc (NYSE:PFE) and BioNTech SE (F:22UAy) are also awaiting word on their own approval request for their candidate BNT162b2.
“I feel pretty confident that portfolios should be positioned for continued good performance from equity markets as we head into 2021,” AXA Investment Managers chief investment officer for core investments Chris Iggo said in a note.
Meanwhile, investors continue to hope for further monetary easing policies from the U.S. Federal Reserve despite the vaccine news. They will be looking to Fed Chairman Jerome Powell’s testimony before Congress later in the day and on Wednesday, as well as the Fed policy meeting on Dec. 15 and 16, for clues on the central bank’s next moves.