Asian stocks mixed after Wall St rebounds from uncertainty

By: |
January 13, 2021 11:16 AM

On Wall Street, the benchmark S&P 500 index gained less than 0.1per cent, recovering from the previous day's decline.

asian stocksAnalysts at JP Morgan believe US equities were benefiting from an exceptional US Federal Reserve backstop and more growth heavy inclination.

Asian stock markets were mixed Wednesday after Wall Street rebounded, shrugging off uncertainty about a possible new attempt to impeach President Donald Trump over last week’s attack on the U.S. Capitol. Tokyo, Australia and South Korea advanced while Shanghai was off by 0.1per cent. Hong Kong swung between gains and losses.

On Wall Street, the benchmark S&P 500 index gained less than 0.1per cent, recovering from the previous day’s decline.

Analysts suggested investors focused on President-elect Joe Biden’s economic stimulus plans after he takes office next week. Democrats in Congress are discussing possibly impeaching Trump for encouraging supporters who attacked the Capitol, but the president has taken few official actions since then. ”Hopes are pinned on the incoming Biden administration, leveraging Democrat Senate majority, to emphatically tackle COVID,” said Mizuho Bank in a report.

The Shanghai Composite Index declined to 3,604.92 while the Nikkei 225 in Tokyo advanced 0.6per cent to 28,325.95. The Hang Seng in Hong Kong was down less than 0.1per cent at 28,267.11.

The Kospi in Seoul added 0.8per cent to 3,152.03 and the S&P-ASX 200 in Sydney was up less than 0.1per cent at 6,681.60. New Zealand declined while Southeast Asian markets advanced.

Investor hopes have been boosted by the rollout of coronavirus vaccines. Markets have risen despite a spike in case numbers in the United States and some other countries.

In the United States, those hopes have been encouraged by the shift in control of the Senate from Republicans to Biden’s Democratic Party. That might reduce the likelihood of political opposition if Biden introduces a more ambitious stimulus plan. He has said he will release details Thursday.

On Wall Street, the S&P 500 rose to 3,801.19. The Dow Jones Industrial Average gained 0.2per cent to 31,068.69. The Nasdaq composite added 0.3per cent to 13,072.43.

In energy markets, benchmark U.S. crude rose 61 cents to USD53.82 per barrel in electronic trading on the New York Mercantile Exchange.

The contract rose 96 cents on Tuesday to USD53.21. Brent crude, used to price international oils, gained 72 cents to USD57.30 per barrel in London. It gained 92 cents the previous session to USD56.58.

The dollar declined to 103.59 yen from Tuesday’s 103.83. The euro rose to USD1.2215 from USD1.2201.

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