Asian markets rise bullish on more US stimulus



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BEIJING – Asian stocks followed the rise on Wall Street on Tuesday after President Joe Biden invited Republicans to a meeting to discuss economic aid, as silver hit an eight-year high.

The market references in Shanghai, Tokyo, Hong Kong and Seoul have all improved.

On Wall Street, the benchmark S&P 500 gained 1.6%, recouping some of the losses earlier in the week amid frenzied trading by video game retailer GameStop and other stocks targeted by day traders novices.

In Washington, Biden invited 10 moderate Republicans to the White House to discuss his proposed $ 1.9 trillion economic aid package. Republicans have already countered with an offer of $ 600 billion, less than a third of the amount proposed by Biden.

“The sound of more stimuli, which tends to lift all boats, was music to the ears of the market,” Axi’s Stephen Innes said in a report.

The Shanghai SHCOMP Composite Index,
+ 0.81%
increased by 0.5% while the Nikkei 225 NIK,
+ 0.97%
in Tokyo added 0.8%. The Hang Seng HSI,
+ 1.30%
in Hong Kong grew 1.8%.

The Kospi 180721,
+ 1.32%
in Seoul was 1.6% higher and Sydney’s S & P / ASX 200 XJO,
+ 1.49%
gained 1.4%.

Stocks fell in New Zealand NZ50GR,
-0.40%
but increased in Indonesia JAKIDX,
-0.38%,
Singapore STI,
+ 0.47%
and Taiwan Y9999,
+ 2.27%.

Money declined after jumping at one point to its highest level in eight years.

Money for delivery in March SIH21,
-5.21%
lost 81 cents, or 2.7%, to $ 28.61 an ounce in London.

Last week there were posts on the Reddit WallStreet Bets forum and other places on social media encouraging small investors to buy money. It skyrocketed on Monday, but many online investors said they were not the ones driving the price up.

Small traders learn that “the silver market is much bigger than some of the small cap stocks they trade,” Oanda’s Edward Moya said in a report. “Buying silver coins and betting on call options is not enough to propel silver prices soaring to record levels.”

On Wall Street, the S&P 500 SPX index,
+ 1.61%
won at 3773.86. The Dow Jones Industrial Average DJIA,
+ 0.76%
rose 0.8% to 30,211.91. The Nasdaq composite COMP,
+ 2.55%
climbed 2.5% to 13,403.39.

US markets have been troubled by frantic trading in GameStop and some other stocks that are expected to fall but have surged after buying from novice traders. Other investors have said that hedge funds that bet against these stocks lose money and sell other stocks.

GameStop GME,
-30.77%
fell 30.8% to $ 225 a share. It ended last year at around $ 18.

Hopes of economic aid, along with the Federal Reserve’s pledge to keep the abundance of low-cost credit going, lifted the S&P 500 and other major indices to record highs.

Investors are outbidding as 2021 approaches in hopes that the rollout of coronavirus vaccines would allow global business and travel to return to normal. This optimism has been marred by spikes in infection and disruptions in vaccine deliveries.

Markets were shaken last week by AstraZeneca’s AZN,
-0.40%
announces that it would provide the European Union with less than half of the promised doses, prompting the EU to impose export controls. On Sunday, AstraZeneca promised to increase European supplies and start delivery earlier.

On the energy markets, the American benchmark CLH21 crude,
+ 1.16%
rose 52 cents to $ 54.07 a barrel. The contract gained $ 1.35 Monday to $ 53.55 a barrel. Brent gross BRNJ21,
+ 1.05%,
used for the price of international oils, added 49 cents to $ 56.84 a barrel in London. It advanced $ 1.31 the previous session to $ 56.35.

The dollar USDJPY,
+ 0.04%
edged down to 104.92 yen from 104.94 yen on Monday.

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