Tue. Oct 26th, 2021

© Reuters. FILE PHOTO: A man wearing a face mask in Tokyo, Japan, on January 4, 2021. REUTERS / Kim Kyung-Hoon

(Correct the name of the ninth paragraph in Munum’s Mumford)

By Alun John

HONG KONG (Reuters) – Asian equities held their recent gains on Wednesday after last week’s fall, as global equities rebounded thanks to a combination of positive news about the COVID-19 vaccine and easing concerns about reduce the Federal Reserve stimulus.

MSCI’s broader Asia-Pacific equities index outside of Japan declined slightly, but still rose 3.7% so far this week. The index fell to a minimum in 2021 at the end of the previous week.

Markets mixed with Australian equities gaining 0.16%, but Chinese blues lost 0.24%.

they were planes. A Reuters poll of analysts and fund managers showed that Japanese stocks are expected to recover from their eight-month low set on Friday to a 30-year high by the end of this year.

Asia was anchored by overnight rises in the top three U.S. stock indices, with the Nasdaq closing at all-time highs, closing the S&P 500 record high this year. ()

Investors remain concerned about COVID-19 infections caused by the highly contagious variant of Delta, but the U.S. Food and Drug Administration on Monday fully approved the COVID-19 vaccine developed by Pfizer Inc. (NYSE :), raising hopes that inoculations could speed up.

Hong Kong’s benchmark jumped nearly 1% when it opened, but fell 0.5%, after posting its best day in a month the day before as the market it was far from last week’s lowest finish this year.

The TECH index rose shortly after the bell gained more than 3%, based on this week’s strong gains as investors accumulated in oversold shares, but later gave up those gains for negotiate flat.

“It’s been a pretty obvious trade back to neutrality, especially in the shares that have been oversold,” said Rob Mumford, Hong Kong-based investment manager GAM Investments.

“As you move forward from here, I don’t think it’s so much about China and Asia, but what the U.S. is doing. If it’s a benign Jackson Hole scenario, I think you’ll definitely see that China means reverse, ”he said.

On Friday, the Federal Reserve will hold its annual economic symposium, which is traditionally held in Jackson Hole, although this year it will take place virtually due to the release of COVID-19 in the county.

The focus remains clear on Fed Chairman Jerome Powell’s statements at the event on any clues about the Fed’s asset purchase reduction schedule, an issue that has affected financial markets in the past. last months.

The benchmark yield rose to 1.3019%, the highest since August 13th.

Improving risk sentiment kept the dollar under pressure, leaving it at least a week low compared to major peers on Wednesday. Commodity currencies such as the Australian and New Zealand dollar have advanced much this week.

“If Powell talks about policy prospects and, more specifically, advice on the timing and / or pace of the downturn, the USD could gain momentum in our view,” CBA analysts wrote in a note.

“In the meantime, the dollar will be guided by the broader market state.”

fell 0.25% to $ 67.37 a barrel, while fell 0.38% to $ 70.92 a barrel; both rose about 8% last week, however, after recording their biggest weekly decline in more than nine months last week. [O/R]

Safe haven gold fell in parallel with the widening increase in risk appetite, with a spot price drop of 0.4% to $ 1,796.03 per ounce. [GOL/]

(This story is replicated to correct the name in the ninth paragraph in Munford’s Mumford)

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