Hong Kong: Most Asian markets rose on Monday, rebounding from the sell-off last weekend, as investors are paying close attention to the progress of Joe Biden’s new US economic rescue plan.
However, despite the support provided by vaccination and long-term optimism about the economic outlook, concerns about the surge in viral infections and new, more deadly strains are still suppressing sentiment.
Legislators in Washington are conducting research on the $1.9 trillion stimulus plan proposed by the new president. Some of them hinted that they could pass certain measures before the Senate impeachment trial against Donald Trump, and the case would start from 2. Start of the week beginning on the 8th.
But this may be adversely affected by the Republicans, who believe that after the $900 billion spending package was passed at the end of last year, another large-scale spending will take place.
The Fed will also hold its first meeting this week under the leadership of the Biden administration, and investors are looking for clues about its monetary policy plans.
Hong Kong led the gains, rallying 1.8 percent, after the government lifted a strict weekend lockdown in one part of the city, while Tokyo, Shanghai, Seoul, Sydney and Singapore also posted healthy gains. Taipei, Manila and Wellington all fell.
The rollout of inoculations continues to provide support to equities as investors look towards a return to normal life.
“Vaccine breakthroughs make it likely that life will become more functional again at some point in 2021, resulting in higher GDP growth and more robust corporate earnings,” said Axi strategist Stephen Innes.
“But increasing global Covid-19 infections, new variants of the virus, tightening social distancing restrictions and delays in vaccine rollouts in some places, all increase the near-term growth risks.”
British Prime Minister Boris Johnson warned at the end of last week that a mutated strain of the disease could be more deadly and infectious, raising the prospect of more containment measures.