SYDNEY (Reuters) – Asian stocks started higher on Monday as expected of the coronovirus vaccine after AstraZenica (NYSE 🙂 resumed its phase-3 trial, while sentiment still remains in the UK, Japan and the Central Bank Was cautious ahead of a big week of meetings. United States.
MSCI’s largest index of Asia-Pacific shares outside Japan was up 0.5%, ready for a second straight session of gains.
Australian shares () climbed 0.2% while Japan’s Nikki () added 0.3%.
US stock futures, the S&P 500 E-Minis (), rose a solid 0.8% after a mixed session on Wall Street last week.
Friday marked six months after the World Health Organization (WHO) declared coronavirus an epidemic.
Since then, major global economies have slipped into recession and millions have lost their jobs, prompting central banks around the world to launch unprecedented stimulus.
The policy bazooka has boosted the financial markets, with the S & P500 () slipping 22%, 10-year Treasury yields 20.4 basis points and the greenback () slipping 3.3%. The best performing major currency so far has been the Australian dollar
“A truly wild ride and Phase 3 vaccine results are likely to continue in the coming weeks,” NAB analyst Tapas Strickland said in a note on Monday.
AstraZeneca (L 🙂 said that over the weekend it has resumed British clinical trials of its COVID-19 vaccine, the most advanced in development after receiving a green light from the security guard.
Late-stage trials of the experimental vaccine, developed with researchers at the University of Oxford, were suspended last week following illness in a study subject in the UK, expressing suspicion of an early rollout.
A vaccine has long been awaited to help get the world out of a coronovirus-induced lockdown.
BCA Research wrote in a note, “The long trade of 14 high-flying ‘basket to work’ stocks versus 14 high-flying ‘COVID-19 Winners’ baskets is being recommended to reopen the global economy.”
“While we maintain a cyclical and secular bullish outlook on the broader market, short-term reform is likely to be on the cards for technical and (geo) political reasons.”
“A playable short-term pullback is in order.”
Later this week, the US Federal Reserve will hold its two-day policy meeting, where it is expected to hold rates stating the previously announced change to target the rate of inflation.
NAB’s Strickland said, “The Fed is less vacant in reducing policy than in the past.”
The Bank of Japan and the Bank of England will announce their respective policy decisions on Thursday.
Asia’s focus will be on the election of the new Prime Minister of Japan with a party room vote expected to begin at 0500 GMT.
In currencies, the dollar was stable against the yen at 106.11
The euro () was flat at $ 1.1841.
Among commodities, US crude () rose 0.4% to $ 37.49 a barrel. Brent () rose to $ 39.86 a barrel.
Gold was slightly higher than the spot price