⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Asian shares edge lower but stimulus, vaccine hopes provide support

Published 02/12/2020, 01:19 pm
Updated 02/12/2020, 01:24 pm
© Reuters.
AXJO
-
JP225
-
PFE
-
DX
-
LCO
-
CL
-
US10YT=X
-
KS11
-
MIAPJ0000PUS
-
CSI300
-
MIWD00000PUS
-
MRNA
-
BNTX
-

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Equities dip in choppy trade on profit-taking

* U.S. lawmakers renew attempt at stimulus bill

* Progress toward coronavirus vaccine boosts risk appetite

By Stanley White and Jessica DiNapoli

TOKYO/NEW YORK, Dec 2 (Reuters) - Asian shares shed early gains from a strong Wall Street lead on Wednesday, as some investors booked profits on a stellar run to record highs, but hope for additional U.S. economic stimulus and a coronavirus vaccine kept market sentiment well supported.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.06%, pulling back from last week's all-time high. Australian stocks .AXJO erased early gains and fell 0.38%.

Shares in China .CSI300 fell 0.22%. Tokyo stocks .N225 fell 0.17% after setting a new 29-year high. South Korean shares .KS11 bucked the trend and rose 1.11% due to signs of an increase in semiconductor demand. stock futures EScv1 declined 0.4% following a record closing high for Wall Street shares.

Benchmark U.S. Treasury yields eased slightly but remained near a three-week high as Republicans and Democrats submitted proposals for economic stimulus in a bid to pass a bill some time this month. say further downside for global equities is likely limited, with major uncertainties surrounding the outlook now fading.

"We've had some positive leads, and a combination of optimism around the vaccine, and government and central bank stimulus remains in place," said Michael McCarthy, chief markets strategist at CMC Markets. "It's a sweet spot for markets."

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 0.07% in Asia on Wednesday, edging toward an all-time high.

Pfizer Inc (NYSE:PFE) PFE.N and Germany's BioNTech SE BNTX.O sought emergency approval of their vaccine candidate from the European regulator on Tuesday. Competitor Moderna Inc MRNA.O also applied for emergency approval from the European regulator on Tuesday. and BioNTech said their vaccine could be launched in the European Union as early as this month, though a European regulator clouded the schedule when it said it would complete its review of their vaccine by Dec. 29. legislators also indicated progress on economic stimulus. Top U.S. Senate Republican Mitch McConnell said on Tuesday that Congress should include a new coronavirus stimulus in a $1.4 trillion spending bill aimed at heading off a government shutdown in the midst of a pandemic. U.S. 10-year Treasury yield US10YT=RR stood at 0.91% in Asia, not far from a three-week high of 0.9380% hit in the previous session as investors priced in the likelihood of more fiscal spending.

The spread between two-year and 10-year yields US2US10=TWEB was also near its steepest in three weeks.

Higher yields did not support the dollar =USD , which was mired near its lowest level in more than 2-1/2 years as investor appetite for risk increased. prices extended losses in Asian trading after OPEC and its allies left markets in limbo by postponing a formal meeting to decide whether to lift output in January.

Brent crude futures LCOc1 fell 0.53% to $47.16 per barrel, while U.S. crude CLc1 fell 0.63% to $44.27 per barrel. Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.