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GLOBAL MARKETS-Asia shares extend gains on supportive Fed, Biden's stimulus

Published 29/04/2021, 03:58 pm
© Reuters.
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Global asset performance http://tmsnrt.rs/2yaDPgn

* World FX rates http://tmsnrt.rs/2egbfVh

By Kane Wu

HONG KONG, April 29 (Reuters) - Asian shares extended gains on Thursday after the Federal Reserve said it was too early to consider rolling back emergency support for the economy, and U.S. President Joe Biden proposed an $1.8 trillion stimulus package.

European and U.S. markets were set to open higher as well, with FTSE futures FFIc1 up 0.15%. E-mini futures for the S&P 500 index ESc1 rose 0.53% and Nasdaq futures NQcv1 advanced 0.87%.

Biden proposed the sweeping new $1.8 trillion plan in a speech to a joint session of Congress on Wednesday, pleading with Republican lawmakers to work with him on divisive issues and to meet the stiff competition posed by China.

He also made an impassioned plea to raise taxes on corporations and rich Americans to help pay for what he called the "American Families Plan" in his maiden speech to Congress. He has also proposed nearly doubling the tax on investment income, which knocked stock markets last week. Dover, Franklin Templeton's chief market strategist in California, said the effect of the tax package on markets is hard to measure for now.

"If it passes, I think it will have an impact on individual stocks that will pay a higher rate of tax or companies with founders that will pay capital gains and could sell stocks," he said. "I think investors are going to think about whether they want take their gains now and that creates the possibility of short-term volatility now."

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS built on early gains and was up 0.46% by mid-afternoon.

Australia's S&P/ASX 200 .AXJO edged up 0.24%, as strong oil prices lifted energy stocks.

China's blue-chip CSI300 index .CSI300 was 0.45% higher, while Hong Kong's Hang Seng index .HSI rose half a percentage point. Seoul's KOSPI .KS11 was flat while Taiwan shares .TWII rose 0.17%.

Markets in Japan were closed for a holiday but Nikkei futures NKc1 rose 0.35% to 29,055 points.

For the rest of the day, investors will focus on the first estimate of U.S. GDP for the first quarter, which is expected at 13:30 GMT.

Fed Chair Jerome Powell said on Wednesday that "it is not time yet" to begin discussing any change in policy after the U.S. central bank left interest rates and its bond-buying programme unchanged, despite taking a more optimistic view of the country's economic recovery. of Biden's speech released in advance by the White House "hit the high points - big infra(structure) spend, talking climate action and vaccines," said John Milroy, investment adviser at Ord Minnett. "The Fed remains dovish, all very supportive."

Tech shares got a boost after Apple Inc AAPL.O on Wednesday posted sales and profits ahead of Wall Street expectations, though it warned a global chip shortage could dent iPad and Mac sales by several billion dollars. Street ended lower on Wednesday. The Dow Jones Industrial Average .DJI fell 0.48% to end at 33,820.38 points, while the S&P 500 .SPX lost 0.08% to 4,183.18. dollar pared up early losses against the yen to 108.61 JPY= and the euro gained 0.07% to 1.2132 following the Fed's decision to maintain supportive policies.

Oil prices extended gains on Thursday after rising 1% in the previous session as bullish forecasts for a demand recovery this summer offset concerns of rising COVID-19 cases in India, Japan and Brazil.

Brent crude LCOc1 for June rose 0.27% to $67.45 a barrel, while U.S. West Texas Intermediate crude CLc1 for June was at $64.02 a barrel, up 0.25%.

Spot gold XAU= added 0.14% to $1,783.85 an ounce.

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http://tmsnrt.rs/2egbfVh Global asset performance

http://tmsnrt.rs/2yaDPgn

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