SYDNEY/NEW YORK (Reuters) – Asian share markets opened slightly higher on Tuesday buoyed by the prospect of a COVID-19 vaccine, reversing the previous days dips as investors took profits at the end of a record-breaking month.
An investor places his hands on the back of his head in front of an electronic board showing stock information at a brokerage house in Hefei, Anhui province, China, May 2, 2012. REUTERS/Stringer/File Photo
MSCIs broadest index of Asia-Pacific shares outside Japan added 0.26% on Tuesday after closing the month 9% higher, the best November since 2001. Japans Nikkei and Australias S&P/ASX 200 were each 0.9% higher, while South Korea was up 1.4%.
Chinas futures were 0.36% higher, following data on Monday that pointed to a continued recovery in the worlds second-largest economy against the backdrop of the COVID-19 pandemic.
Weve seen clearly a huge wave of liquidity coming to equities in response to the vaccine news and in response to U.S. election news, said Hamish Tadgell, a portfolio manager at SG Hiscock & Company.
But there are still risks, and as a result we could see the market pull back, I think, particularly as we come into sort of the Christmas period.
Wall Street was weaker on Monday, partly driven by a rebalancing of portfolios, as investors cashed in on gains after a strong month punctuated by updates of COVID-19 vaccines progressing and hopes of a swift economic rebound next year.
There was profit taking around the world so we ended a record month with a whimper not a bang, and you know, taking a little bit of a breather, said Interactive Brokers Chief Strategist Steve Sosnick.
I think that markets are pricing in, if not fully pricing a recovery, they are pricing in the vast majority of it (and) its very hard to meet these elevated expectations.
MSCIs gauge of stocks across the globe was roughly flat. Hong Kongs Hang Seng index futures were down 0.36%, while Chinas CSI 300 futures were 0.36% higher.
In the United States the Dow Jones Industrial Average fell 0.91% on Monday while the S&P 500 lost 0.46%. The tech-heavy Nasdaq Composite ended down 0.06%.
Moderna Inc applied for U.S. emergency authorization for its COVID-19 vaccine after full results from a late-stage study showed it was 94.1% effective with no serious safety concerns.
U.S. markets were a little bit lower, thats what was holding us back a little bit, said Chris Weston, head of research at Melbourne brokerage Pepperstone. People are pretty optimistic for a good 2021.
The dollar was under pressure on Tuesday, after closing out its worst month since July with a little bounce and as investors reckon on even more U.S. monetary easing.
Oil prices were slightly lower on uncertainty about whether the worlds major oil producers would agree to extend deep output cuts at talks this week.
U.S. crude eased back 11 cents to $45.23 a barrel on Tuesday, while Brent crude futures were largely unchanged at $47.86.read more
Asian markets poised for choppy day after Wall Street’s fall – Reuters India
