BEIJING – Asian stocks followed Wall Street higher on Tuesday after President Joe Biden invited Republicans to a rally to discuss economic aid, while silver fell a high in eight years.
Market benchmarks in Shanghai, Tokyo, Hong Kong and Seoul have all progressed.
On Wall Street, the benchmark S&P 500 index gained 1.6%, making up for some of the losses earlier this week amidst the frenzied trading of video game retailer GameStop and other stocks targeted by early day traders.
In Washington, Biden invited 10 moderate Republicans to the White House to discuss his proposed $ 1.9 trillion economic support plan. Republicans previously responded with a bid of $ 600 billion, or less than a third of Biden’s proposed amount.
“The sound of more stimuli, making all the boats go up, was music to the ears of the market,” Axi’s Stephen Innes said in a report.
The Shanghai Composite Index SHCOMP,
0.5% up while the Nikkei 225 NIK,
added 0.8% in Tokyo. The Hang Seng HSI,
in Hong Kong rose 1.8%.
The Kospi 180721,
in Seoul was up 1.6% and Sydney’s S & P / ASX 200 XJO,
1.4% gained.
Stocks withdrew in New Zealand NZ50GR,
but rose in Indonesia JAKIDX,
STI from Singapore,
and Taiwan Y9999,
Silver fell after jumping to its highest level in eight years at one point.
Silver for delivery in March SIH21,
shed 81 cents, or 2.7%, to $ 28.61 an ounce in London.
Last week, there were reports on the Reddit forum WallStreet Bets and other social media posts encouraging small investors to buy silver. It shot up Monday, but many online investors said it wasn’t them bidding the price.
Smaller traders are learning that “the silver market is much larger than some of the small cap stocks they trade,” Edward Moya of Oanda said in a report. “Buying silver coins and betting on call options is not enough to drive silver prices to record highs.”
On Wall Street, the S&P 500 index SPX,
achieved to 3,773.86. The Dow Jones Industrial Average DJIA,
rose 0.8% to 30,211.91. The Nasdaq composite COMP,
climbed 2.5% to 13,403.39.
The US markets have been shaken by frenzied trading in GameStop and some other stocks that were expected to fall but boomed after beginner traders bought. Other investors said hedge funds betting on those stocks lost money and sold other stocks.
GameStop GME,
fell 30.8% to $ 225 per share. It ended at about $ 18 last year.
The hopes for economic aid, along with the Federal Reserve’s promise to maintain an abundance of cheap credit, have pushed the S&P 500 and other major indexes to record highs.
Investors are offering shares in the run-up to 2021 in the expectation that the rollout of coronavirus vaccines would bring global business and travel back to normal. That optimism has been tarnished by infection peaks and disruptions in vaccine delivery.
Markets were in turmoil last week due to AstraZeneca’s AZN,
announcement 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 supply and to start delivering earlier.
In energy markets, US crude oil benchmark CLH21,
rose 52 cents to $ 54.07 a barrel. The contract grossed $ 1.35 to $ 53.55 a barrel on Monday. Brent raw BRNJ21,
used to price international oils added 49 cents to $ 56.84 a barrel in London. It moved $ 1.31 from the previous session to $ 56.35.
USDJPY dollar,
dropped to 104.92 yen from Monday’s 104.94 yen.