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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.
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* 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

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