Asian shares jump to record high as investors bet on healthier 2021

Economy 01:01 PM - 2020-12-30

Credit: Reuters

Asian shares hit a record high on Wednesday with investors betting on a strong economic recovery next year, as there is little sign policymakers wind back massive stimulus efforts aimed at staving off coronavirus-fuelled downturns.

 

MSCI’s gauge of Asia-Pacific shares excluding Japan rose 1.2% to hit a record high, led by gains in Chinese shares and bringing its gains so far this year to 18.9%.

 

Japan’s Nikkei share average lost 0.45% on its last trading day of 2020 after jumping to a 30-year high on Tuesday. For the year, it was up 16.0%.

 

European shares are seen dipping slightly with Euro Stoxx 50 futures down 0.2% and FTSE futures losing 0.1%.

 

Convictions that global monetary authorities will continue to pump liquidity into the banking system to support the pandemic-stricken economy underpin risk assets.

 

“We think continued monetary and fiscal policy support means investors should take risk. Stocks will do better than bonds. Within bonds, corporate bonds should beat government bonds,” said Hiroshi Yokotani, head of Asia-Pacific fixed-income business at State Street Global Advisors.

 

E-Mini futures for the S&P 500 rose 0.41%, erasing losses made in the previous day after U.S. Senate Majority Leader Mitch McConnell put off a vote on President Donald Trump’s call to boost COVID-19 relief checks.

 

Although many Republican Senators remain adamantly opposed, worried about the cost to taxpayers, support is growing among them, including two from Georgia, who are running in the crucial races that will determine who will control the Senate.

 

 

 

PUKmedia \ Reuters