Asian stocks floated near 1-1 / 2 week high on Monday, aided by expectations that monetary policy around the world will remain accommodative, while the rollout of COVID-19 vaccines raised fears of a new dangerous wave of coronavirus infections.
MSCI’s widest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) last stood at 695.59, a striking distance from Friday’s high of 696.48 – a level not seen since April 7.
The index jumped 1.2% last week and is up 5% so far this year, on its way to its third consecutive annual gain.
“The extremely supportive monetary and fiscal policies continue to provide a fertile environment for risky assets,” said Rodrigo Catril, senior forex strategist at National Australia Bank.
Australian stocks (.AXJO) were up 0.25%, while the New Zealand reference index (.NZ50) and South Korea’s KOSPI (.KS11) each contributed 0.4%. The Japanese Nikkei (.N225) lost 0.4%.
On Friday, the S&P 500 (.SPX) gained 0.4% to finish on a new all-time high as it recorded its sixth consecutive weekly profit. The Dow (.DJI) finished at 0.5%, also at a record high, while the Nasdaq (.IXIC) climbed 0.1%.
E-mini futures for the S&P 500 were down 0.3% during early Asian trading.
This week got off to a quiet start with no major data releases planned for Monday.
Investors will keep an eye out for revenues from IBM (IBM.N) and Coca-Cola (COKE.O) later in the day. Netflix (NFLX.O) reports Tuesday, while later in the week American Airlines (AAL.O) and Southwest (LUV.N) will be the first major post-COVID cyclicals to release results.
The European Central Bank (ECB) is meeting Thursday and no changes in rates or expectations are expected, while preliminary data on factory activity around the world for April is expected on Friday.
Elsewhere, Bitcoin, the world’s largest cryptocurrency, has made up for most of its losses after falling as much as 14% on Sunday following speculation that the US Treasury may be trying to tackle money laundering within digital assets, said Catril of NAB. .
Data website CoinMarketCap called a blackout in China’s Xinjiang region, which is reportedly enabling a lot of bitcoin mining, for the sale. read more
The withdrawal in Bitcoin also comes after Turkey’s central bank banned the use of cryptocurrencies for purchases on Friday. read more
Bitcoin is up more than 90% so far, driven by its widespread adoption as an investment and currency, accompanied by the rush of retail money into stocks, exchange-traded funds, and other risky assets.
In currencies, the US dollar hovered near a four-week low against a basket of currencies as investors increasingly bought into the Federal Reserve’s push to pursue an accommodative policy for a while longer.
The dollar index, which measures the greenback against a basket of six currencies, remained unchanged at 91,612, not far from its lowest level since March 18 hit on Friday.
Against the Japanese yen, the greenback was slightly disappointing at 108.72. The euro was slightly lower at $ 1.1966, while the British pound lost 0.07% to $ 1.3820.
The risk-sensitive Aussie dollar slumped for the second day in a row, falling 0.2% to $ 0.7715.
In commodities, oil prices fell with the Brent dropping 34 cents to $ 66.43 a barrel and US crude oil declining 29 cents to $ 62.84.
Gold rose 0.2% to $ 1,779.3 an ounce.
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