HONG KONG (Reuters) – Most Asian markets fell on Wednesday, with profits rising after a strong rally around the world in recent weeks, with investors fearing that price estimates may have gone too far.
However, analysts say that although there is scope for a reduction in equities, the general idea is to reduce the rate of vaccine rollout, infection and lockdown to allow the economy to return to normal. Will start their strong top march.
Washington is also in the spotlight, as US lawmakers seek to push ahead with Biden’s 1. 1.9 trillion stimulus package, which is likely to be a key driver of a month-long global rise.
It stipulates that an increase in spending will provide an additional boost to the world’s top economies. And the prospect of a resumption of business has dashed inflation expectations, pushing US Treasury yields to near one-year highs.
This has raised concerns about rising debt costs, which market watchers fear could hamper recovery and affect consumer spending.
“Rising production, rising energy prices due to inflationary concerns, and the prospect of a major US financial stimulus and global recovery are entering a more solid phase as vaccine rollouts reopen economies,” he said. Has caused. ” Rodrigo Cattrell of the National Bank of Australia.
In a note, Stephen Anis said in a note: “It is difficult to say if we have reached any major inflation points, but it is certainly beginning to feel that theft in US bonds would be more marginalized. The stimulus can match the powder
“It remains to be seen if the real drug boom these days is driving the sentiment of the equity market.”
– Prices ‘trap enough’ –
He added that traders have greater confidence in the rescue package and the Federal Reserve – as well as assurances that it will relax monetary policy – will continue to provide greater support to markets.
After a mixed lead over Wall Street, Asian markets rallied, benefiting from a clear run so far this year.
Tokyo, Sydney, Singapore, Seoul, Mumbai, Bangkok, Jakarta and Manila all fell, while Taipei and Wellington rose.
Hong Kong on Wednesday reversed its initial sales target for an increase of more than one per cent – to break 31,000 for the first time since June 2018 – due to strong investor interest in mainland China, where fuel is still lunar. Markets are closed for New Year’s break.
“The market is pretty emotional,” Liz Ann Saunders of Charles Schwab & Co. told Bloomberg TV. “You have to take more steps in production that goes beyond the comfort zone as a potential risk associated with it.”
Nevertheless, the increase in production shows that the outlook is very good.
“There’s a lot of joy in the air and that’s the biggest reason we’ve seen interest rates rise in the United States and globally,” said Tom de Giloma of Sport Global Holdings.
Falling oil prices hit a 13-month high this year after rising more than 20 percent, supported by a large Jimmy surge in Texas that has hurt production in a critical state.
The bitcoin rose slightly after rising for the first time to $ 50,000 on Wednesday.
– Key personalities around 0700 GMT –
Tokyo Nikkei 225: Down 0.6% to 30,292.19 (close)
Hong Kong Hang Seng: UP 1.2% at 31,124.29
Shanghai – Comprehensive: closed on holidays
Pound / Dollar: Down from 1.3902 to 3 1.3886 at 2150 GMT
EUR / USD: 10 down from 2 1.2105 to 20 1.2089
Euro / Pound: Down from 87.07 Pence to 87.06 Pence
Dollar / Yen: Down from 105.99 Yen to 105.92 Yen
Brent North Sea crude: UP 0.3% per barrel.5 63.54
West Texas Intermediate: UP 0.2% per barrel.1 60.14
New York Dow: UP 0.2% to 31,522.75 (close)
London FTSE 100: Down 0.1 to 6,748.86 (close)