Investors on Friday pushed Asian markets higher on continued optimism over COVID-19 vaccines and on signs of progress on a new US stimulus, although surging infections and deaths highlighted the painful, immediate reality of the coronavirus crisis.
While the consensus is that the world can begin to get back to normal — and the economy recover — from next year as people are inoculated, observers warn lockdowns and other containment measures in place now are crippling businesses and jobs.
Focus is now turning to Washington as lawmakers appear to be finally inching towards an agreement on a new stimulus for the world’s biggest economy before the Christmas break.
Photo: EPA-EFE
Democratic leaders have backed a US$908-billion bipartisan proposal as a starting point for discussions, and some top Republicans are also warming to the idea.
They had originally called for about US$2 trillion.
Republican Mitt Romney, who helped draw up the new proposal, said: “We’re getting more and more support from Republicans and Democrats.”
US President Donald Trump’s ally, US Senate Judiciary Chairman Lindsey Graham, was also said to have backed the offer, and while US Senate Majority Leader Mitch McConnell — who has mostly kicked back against bigger spending plans — has yet to accept it, there are hopes he will support the measure.
McConnell has offered a US$500 billion bill, but was reported to have called Democrats’ acceptance of a smaller deal “heartening.”
Hong Kong, Shanghai, Sydney, Seoul and Taipei were all up.
In Taipei, the TAIEX rose 1.11 percent to a new closing high of 14,132.44, after moving between 14,010.17 and 14,149.56 on turnover of NT$286.966 billion (US$10.06 billion). It was up 1.91 percent for the week.
Hong Kong’s Hang Seng Index gained 0.4 percent to close at 26,835.92, but lost 0.22 percent for the week.
The Shanghai Composite Index increased 0.07 percent to 3,444.58, and rose 1.06 from a week earlier.
Australia’s S&P-ASX 200 rose 0.28 percent to 6,634.1, with a weekly gain of 0.5 percent.
Seoul’s KOSPI was up 1.31 percent at 2,731.45, and increased 3.72 from a a week earlier.
India’s SENSEX was given a lift after India’s central bank said the economy was recovering faster than expected and revised up its growth estimates for this year, from a contraction of 9.5 percent to a 7.5 percent shrinkage.
The index rose 1 percent to 45,079.55, increasing 2.11 percent from a week earlier.
In Japan, the TOPIX was up 0.04 percent at 1,775.94, but lost 0.59 percent for the week.
However, the Nikkei 225 lost 0.22 percent to close at 26,751.24, but rose 0.4 percent from a week earlier.
“Before we can make new gains, there is the usual sentiment tug-of-war between medium-term optimism and near-term COVID despair,” AxiCorp Financial Services Pty chief global markets strategist Stephen Innes said.
“Still, all roads lead to prosperity eventually, as the post-pandemic market rally has moved seamlessly from policy-driven to mobility-driven to vaccine-driven and should continue so, even if some investors are sitting on the fence waiting for a new stimulus deal,” he said.
Additional reporting by CNA, with staff writer
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