Tokyo was the most prominent actor, with the Nikkei 225 surpassing 30,000 points for the first time in 31 years.
Representative image. Reuters
Hong Kong: Asian markets rallied again on Monday, extending a global advance after another record on Wall Street, as traders were buoyed by the prospect of massive new stimulus in the US, as well as further declines in coronavirus
infection and death rates.
Tokyo had the outstanding performance, with the Nikkei 225 topping 30,000 points for the first time in 31 years, as data showed that Japan’s economy performed better than expected late last year.
Actions across the planet have been increasing for months as vaccination programs get underway and fewer people contract the virus, fueling hopes that financially painful containment measures may begin to lift.
Optimism has pushed oil prices to highs not seen since last January.
The weekend of Donald Trump’s impeachment trial in the Senate also allows US lawmakers to focus on pushing President Joe Biden’s vast bailout package.
There was an expectation that the $ 1.9 trillion proposal could wane as Republicans and some Democrats rejected its size, but there is a growing belief that the final figure could be closer to the president’s plan.
However, while the general consensus is that the global economy will skyrocket this year, there is growing concern that Biden’s waste of spending could exacerbate an expected jump in inflation.
That could force central banks to tighten their ultra-flexible monetary policies, which have been a key factor in the markets’ recovery.
And Treasury Secretary Janet Yellen asked her Group of Seven counterparts to join the United States in turning on the taps, saying at their first meeting that “the time to go big is now.”
Bazookas from USA
Stephen Innes, a strategist at Axi, said: “Investors are beginning to delight again in America’s fiscal and monetary bazookas that show no signs of abating.
“With the accelerated launch of vaccines worldwide and a sharp reduction in COVID-19 infections in the US that appear to have occurred much faster than any previous wave, the most likely scenario remains a strong economic recovery beginning in the spring or early summer with increased risks of overheating. “
He said a surge in US Treasury yields showed expectations of higher inflation going forward, which “at some point … will become a temporary problem for stocks.”
But Innes added that “with monetary and fiscal policy probably on full throttle, it is difficult to see a sustained sell-off in that environment.”
And OANDA’s Jeffrey Halley said: “The world’s inflation hunters are on high alert … although if you take the US out of the equation, inflation is as elusive as ever in Europe, Japan, China, South Korea and Thailand. ., Malaysia, Singapore and even Indonesia. “
The upbeat mood on the trading floors helped propel Wall Street’s top three indices to new records last week, with Asia eagerly taking over on Monday.
Tokyo rose nearly two percent to 30,000 for the first time since 1990, helped by data showing that the Japanese economy contracted less than was feared last year.
Seoul, Mumbai and Bangkok were up more than one percent, while Sydney, Singapore and Jakarta were also in the green.
However, Wellington fell on the news that two coronavirus The infections that have prompted a rapid shutdown of Auckland were the country’s first cases of the highly contagious strain first detected in Britain.
Hong Kong, Shanghai and Taipei were closed for holidays.
Oil prices continued to climb, with WTI surpassing $ 60 a barrel for the first time since last January on demand expectations and when a severe cold snap in Texas raised concerns that production in the key producing state will decline.
And bitcoin pulled out after hitting a new high of $ 49,317 in reaction to news that MasterCard and US bank BNY Mellon had moved to make it easier for people to use the cryptocurrency. On Monday it was at $ 46,885.
Key figures around 0710 GMT –
Tokyo – Nikkei 225: up 1.9 percent to 30,084.15 (close)
Shanghai – Composite: Closed for holidays
Hong Kong – Hang Seng: closed for holidays
Euro / Dollar: UP to $ 1.2138 from $ 1.2130 at 2200 GMT on Friday
Dollar / yen: up to 105.06 yen from 104.91 yen
Pound / Dollar: UP to $ 1.3900 from $ 1.3845
Euro / Pound: DOWN to 87.33 pence from 87.50 pence
West Texas Intermediate: UP 2.3 percent at $ 60.85 per barrel
North Sea Brent crude: 1.9 percent at $ 63.63 a barrel
New York – Dow: + 0.1 percent to 31,458.40 (close)
London – FTSE 100: + 0.9 percent to 6,589.79 (close)
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She is a freelance blogger, writer, and speaker, and writes for various entertainment magazines.