By Gina Lee
Investing.com – Asia Pacific stocks were mostly up on Tuesday morning, with Secretary of the Treasury nominee Janet Yellen due to deliver comments on U.S. stimulus measures and the dollar later in the day.
Investors continue digesting positive economic data from China and there are hopes that it could underpin growth in the region amid the threat of COVID-19 lockdowns lengthening the road to economic recovery in other regions.
Japan’s Nikkei 225 was up 1.22% by 9:13 PM ET (2:13 AM GMT) and South Korea’s KOSPI jumped 2.04%. In Australia, the ASX 200 gained 1.24%.
Hong Kong’s Hang Seng Index rose 1.74%. A 12-member government advisory panel on Monday unanimously recommended the approval of COMIRNATY, the COVID-19 vaccine developed by Pfizer Inc (NYSE:PFE) and BioNTech SE (F:22UAy), for emergency use in the city.
The recommendation, which took three hours to reach, will go before Secretary for Food and Health Sophia Chan for a final decision. The city’s vaccine rollout program is targeted to start in mid-February, after the Lunar New Year holiday.
China’s Shanghai Composite inched up 0.01% while the Shenzhen Component inched down 0.09%. Monday’s National Bureau of Statistics data showed that industrial production grew 7.3% year-on-year in December. It also showed that GDP rose 6.5% year-on-year in the fourth quarter but grew 2.6% quarter-on-quarter.
Yellen will testify before the Senate Finance Committee later in the day as part of her Senate confirmation hearing. The hearing is likely to touch on topics ranging from foreign-exchange policy to taxes and serve as the first congressional forum where lawmakers will vet the $1.9 trillion COVID-19 relief plan unveiled by President-elect Joe Biden during the past week.
In her testimony, Yellen is reportedly expected to affirm the U.S.' commitment to market-determined exchange rates and indicate that the country doesn’t seek a weaker dollar for competitive advantage.
“The extensive advance discussion of Treasury nominee Yellen’s views on the dollar suggests that she does not want her nomination hearings to be market moving,” Standard Chartered (OTC:SCBFF) Plc head of North American macro strategy Steven Englander said in a note, which added that “reassuring is likely seen as the preferred stance.”
Global shares are losing steam after starting 2021 on a strong note, with investors looking to the upcoming earnings season. Biden’s proposal is also widely expected to face Congressional opposition from Republicans and could cause some taxes to rise.
Biden and his administration will be sworn into office on Wednesday, with investors also monitoring incumbent President Donald Trump’s last full day in office.
On the central bank front, the Bank of Japan and the European Central Bank will hand down their policy decisions on Thursday.