Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Asian Stocks Up, Even as Senate Decision on U.S. Stimulus Checks Amount is Delayed

Stock MarketsDec 29, 2020 10:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – Asia Pacific stocks were mostly up on Wednesday morning, with bets on a strong economic recovery in 2021 as policymakers show little signs of scaling down unprecedented stimulus efforts to boost COVID-19 battered economies. However, the U.S. Senate has delayed a vote on increasing the amounts on the stimulus checks to be distributed to Americans.

Japan’s Nikkei 225 was down 0.54% by 10:14 PM ET (3:14 AM GMT), while South Korea’s KOSPI gained 1.12%.

In Australia, the ASX 200 fell 0.72%. The country is facing a second cluster of COVID-19 cases in Sydney’s Croydon suburb. In a bid to prevent a super spread, the Greater Sydney area sees household gatherings to ring in the new year limited to five visitors and the maximum size of outdoor gatherings reduced to 30 from 50. The city’s Northern Beaches area remains under lockdown.

Hong Kong’s Hang Seng Index jumped 1.57%.

China’s Shanghai Composite was up 0.78% while the Shenzhen Component rose 1.36%. Chinese data, including the manufacturing and non-manufacturing Purchasing Managers Index (PMI) are due to be released on Thursday.

The National Bureau of Statistics also revised China’s 2019 GDP down 6% to CNY98.65 trillion ($15.10 trillion) earlier in the day.

Some investors remained optimistic as 2020 draws to a close.

“Investors stick to a bullish view overall and some are starting to bet further on rise in equity prices,” Nomura Securities cross-asset strategist Masanari Takada told Reuters.

Also underpinning risk assets such as stocks were expectations that central banks will also continue to pump liquidity into the banking system to support economic recovery.

“We think continued monetary and fiscal policy support means investors should take risk. Stocks will do better than bonds. Within bonds, corporate bonds should beat government bonds," State Street (NYSE:STT) Global Advisors head of Asia-Pacific fixed-income business Hiroshi Yokotani told Reuters.

U.S. shares hit pause on recent record highs during the previous session after Senate Majority Leader Mitch McConnell blocked increasing the stimulus checks amounts from $600 to $2,000 on Tuesday. The House of Representatives and U.S. President Donald Trump both approved the increase earlier in the week.

As a volatile 2020 draws to a close, risk assets such as stocks, corporate bonds and Bitcoin are hovering just below record highs. As investors attempt to assess the impact of COVID-19 and the pace of vaccine distribution, the MSCI AC World Index of global stocks looks set to end the year around 14% higher, after surging almost 68% since its low seen in March.

“This is an economy that is recovering, policy is going to be accommodative for years to come, it suggests a good backdrop for risk assets. But it doesn’t mean there aren’t going to be some challenges as we progress over the next couple of years,” Invesco global market strategist Brian Levitt told Bloomberg.

“The reality is the markets are going to be focused on a recovery,” he added.

Asian Stocks Up, Even as Senate Decision on U.S. Stimulus Checks Amount is Delayed

Related Articles

Uber: No Sign of Upside Yet
Uber: No Sign of Upside Yet By TipRanks - Sep 19, 2021

Uber Technologies (NYSE:UBER) develops platforms that allow for independent ride-sharing and food deliveries. I am bearish on the stock. (See Uber stock charts on TipRanks) C-Suite...

CVS: Efficiency could Bolster Dividend Payouts
CVS: Efficiency could Bolster Dividend Payouts By TipRanks - Sep 19, 2021

CVS Health Corporation (NYSE:CVS) is a U.S.-based pharmacy chain with offerings throughout the entire health care spectrum. CVS stock is heavily backed by Michael Burry and has...

Energy Transfer: Looking Lively for Investors
Energy Transfer: Looking Lively for Investors By TipRanks - Sep 19, 2021

I am bullish on Energy Transfer (NYSE:ET), as its excessively cheap valuation and attractive distribution make it appear to be a very attractive place to invest right now. Energy...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ronald Warren
Ronald Warren Dec 29, 2020 11:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The world has gone insane. Years ago my broker explained the $5.00 hammer sold for 20,000 bucks to me. We're living it. Many investors are 'gonna get caught holding that expensive hammer.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email