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Home / Business / Asian stocks fall on American stimulus uncertainty

Asian stocks fall on American stimulus uncertainty



TOKYO / BOSTON (Reuters) – Asian stocks plunged into growing uncertainty on Wednesday as US lawmakers agreed on an additional round of major fiscal stimulus to support an economy still struggling with the new coronavirus.

PHOTO PHOTO: A man wearing a face mask was spotted inside the Shanghai Stock Exchange building after the country was hit by a new coronavirus outbreak, in Pudong Financial District in Shanghai, China February 28, 2020. REUTERS / Aly Song

However, vaccine development hopes prompted some investors to reduce safe-haven assets such as gold and government bonds and buy the corrupted stocks of companies hit hardest by the virus.

The mixed feeling has led to truncated trading in Asia with the former Japan Asia-Pacific stock index falling 0.76% while Japan’s Nikkei gained 0.2%.

On Wall Street, the S&P 500 grabbed a seven-day winning streak after reaching its all-time peak in February, shortly before the COVID-1

9 global explosion.

The decline came as the political feud between the Republican White House and Congressional Democrats over coronavirus relief continued for a fourth day, with each party blaming the other for interference.

By banning a bipartisan deal, the U.S. economy could be left with the measures that U.S. President Donald Trump demanded Saturday through executive orders to bypass Congress.

“We have a lot of uncertainty. It seems that it is becoming more difficult for both sides to compromise as the election approaches … Trump’s proposals would be smaller than the markets expected. The question is whether they are also valuable, “said Junpei Tanaka, strategist at Pictet.

U.S. election campaigns look steamy after presidential candidate Joe Biden elected Senator Kamala Harris as his running mate.

The E-mini future for the S & P500 changed shortly after the news.

The 10-year yield of the US Treasury plunged to 2 basis points at 0.636% in Asia after marking a month of 0.661% in previous US trade.

At the forefront of selling defenses ahead of the biggest ever 10-year auction, later in the day, bonds have lost some of their safe haven even for the rising hopes of COVID-19 vaccines.

President Vladimir Putin said on Tuesday that Russia had become the first country to grant regulatory approval for a COVID-19 vaccine after less than two months of human testing.

As Moscow’s decision raised eyebrows, news raised hopes that some of the vaccines currently in development would become available sooner than expected.

Investors bought stocks of the hospitality industry and other value-driven stocks, leading the center of the old Dow Jones economy to surpass the flying Nasdaq.

Globally, the MSCI value has increased 1.5% while the MSCI Growth has lost 1.3% so far this week.

“As countries around the world seek to support the economy without harsh measures such as blockages, investors are considering whether they can hold value stocks underweight,” said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

The most dramatic move took place in gold, which suffered its biggest daily drop in seven years on Tuesday. On Wednesday, another 1% fell to $ 1,891.

However, Michael Hsueh, Commodities & FX Strategist at Deutsche Bank in New York said, there is a good chance that this week’s downturn will attract new buyers.

“In today ‘s example, news about vaccines may not be enough to change the macro narrative, so much so that it is seen as a medical error in rapid progress through testing procedures,” he said, referring to the Russian vaccine.

Major currencies changed slightly, with the euro almost flat at $ 1.1728 and the yen also moving slightly to 107.27 per dollar.

The New Zealand dollar fell 0.4% after the country closed Auckland after four new COVID-19 cases and the country’s central bank took a dovish stance.

Oil prices changed slightly, with Brent up 0.2% to $ 44.60 a barrel. US crude rose 0.1% to $ 41.66.

Reporting by Lawrence Delevingne in Boston; Edited by Sam Holmes

Our standards:Principles of Trust of Thomson Reuters.

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