HONG KONG – Asian markets drifted today as investors struggled to build on last month’s spectacular rally, with vaccine optimism largely priced in and any further advances kept in check by near-term virus concerns.
While met with great joy, the first approval of a Covid-19 drug by Britain yesterday had little impact on stocks as it had been widely expected soon.
Focus is now on regulators in the United States and Europe, and the rollout that will allow life to get back to normal and the economy to get back on track.
There were also growing hopes that lawmakers on Capitol Hill are finally inching towards an agreement on a fresh rescue package for the beleaguered US economy after a bipartisan plan was put forward this week.
Observers pointed to a pick-up in Treasury yields that suggests investors expect interest rates to rise in the future – a sign that the economy is improving.
“The market has almost immediately priced in a better-than-expected 2021, particularly in the second half, and that’s what we are seeing here, and on the yield curve as well,” Alicia Levine, at BNY Mellon Investment Management, told Bloomberg TV.
“The message here really is that better days are ahead and that dips and consolidations are eminently buyable.”
Wall Street enjoyed another broadly positive day, with the S&P 500 chalking up another record close, while the Dow also advanced, though the Nasdaq inched down from Tuesday’s all-time high.
Asia struggled to break higher, though, with most markets fluctuating.
Hong Kong, Sydney, Seoul, and Taipei rose but Shanghai, Singapore, Manila, and Wellington were in negative territory. Tokyo went into the break barely moving after swinging through the morning.
While the global rally has slowed this week, the general consensus is that a bright future awaits. – AFP, December 3, 2020
