Asian equities higher on US recovery hopes

File: Both the Dow and S&P finished at new peaks on Friday and also posted their fourth consecutive weekly gains. AFP/Angela Weiss

NEW YORK - Asian markets rose on Monday after recovery hopes for the coronavirus-battered US economy fuelling another round of record highs on Wall Street to close last week's trade.

Both the Dow and S&P finished at new peaks on Friday and also posted their fourth consecutive weekly gains, following on the heels of strong data for American housing starts, employment and retail sales.

Investors are banking on accelerated US pandemic containment efforts marking a step toward economic normalcy, with half of all adults in the country now having had at least one vaccine dose. 

The easing of restrictions in Europe has also boosted optimism even as analysts keep a wary eye on alarming outbreaks prompted by new strains of the virus elsewhere in the world.

"Stocks will kick off the week at record highs, with investors digesting what appears to be an optimistic recovery despite mounting concerns about new Covid-19 variants," said Stephen Innes of Axi.

With less economic data on the calendar in the days ahead and the Fed in a communications blackout ahead of its April 28 rates meeting, "it might be a week for spring housekeeping in the markets," he added.

Hong Kong and Shanghai were both up more than one percent in morning trade, despite first quarter economic growth in China skating under market expectations.

Tokyo rose 0.2 percent after a shaky start with investors searching for new purchase cues.

"The Tokyo market may take a wait-and-see stance before the corporate earnings season kicks into high gear" later this week, SBI Securities said in a note.

Market sentiment in Japan has been hamstrung by a slow-moving vaccination programme, though the government said Sunday that the country should have enough vaccines for all citizens by September.

Sydney, Seoul, Taipei all rose, while Singapore was flat and slumps rounded out morning trade in Jakarta and Manila.

Oil benchmarks were down despite energy markets enjoying a boost from industry forecasts and tensions between Washington, Tehran and Russia, Innes said.

"With a softening in the Chinese credit impulse and a resurgence of virus cases in India and Japan, topside ambitions continue to run into walls of profit-taking," he added.

Source
AFP

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