ASIAN shares were set to open higher today after US markets gained ground on positive data from trials of three potential Covid-19 vaccines and hopes that the European Union would finalise a recovery fund.
Australian S&P/ASX 200 futures YAPcm1 rose 0.70% in early trade while Japan’s Nikkei 225 futures NKc1 were up 0.02%, or 0.47% higher than the Nikkei’s close yesterday.
Hong Kong’s Hang Seng index futures rose 0.92%. E-mini futures for the S&P 500 EScv1 slipped 0.08%.
Early data from trials of three potential Covid-19 vaccines released on Monday, including a closely-watched candidate from Oxford University, increased confidence that a vaccine can train the immune system to recognise and fight the novel coronavirus without serious side effects.
European Union leaders appeared to near an agreement on Monday on a 750-billion-euro stimulus plan for regional economies hard-hit by the pandemic.
Also supporting sentiment were hopes for another round of US economic stimulus after congressional Republicans announced plans to seek another US$1 tril (RM4.26 tril) in coronavirus economic relief.
“Global equities kicked off the trading week on a positive note as vaccine hopes supported optimism,” Felicity Emmett of ANZ Research wrote.
“US politicians will begin discussing the next tranche of stimulus this week, and that’s going to be a key focal point for markets too.”
The day’s news helped push the euro to its highest level in more than four months against the US dollar, while the Nasdaq reached a new high – its seventh record in July.
The euro EUR= was up 0.16%, at US$1.1444, while the yen JPY= gained 0.27%, to US$107.2800.
The Dow Jones Industrial Average rose 0.03%, the S&P 500 gained 0.84% and the Nasdaq Composite jumped 2.51%.
Tech stocks Amazon.com Inc and Microsoft Corp provided the biggest boosts to the Nasdaq and the S&P500.
MSCI’s benchmark for global equity markets rose 0.85%.
However, worries about the pandemic’s economic and human toll pushed gold prices to their highest level since September 2011 on Monday.
US gold futures GCv1 settled up 0.4% to US$1,817.40 per ounce.
More than 14.58 million people have been reported to be infected by the novel coronavirus globally and 605,782 have died, according to a Reuters tally.
Oil prices were little changed on Monday. Brent crude LCOc1 settled up 14 cents, or 0.3%, at US$43.28 per barrel, while US West Texas Intermediate CLc1 rose 22 cents, 0.5%, to US$40.81. – July 21, 2020, Reuters
