Written by Swati Pandey
SYDNEY (Reuters) – Asian stocks were reassured on Monday on renewed hopes of a corona virus vaccine after AstroGeneca (NYSE) resumed its Phase-3 testing, a sentiment ahead of a major weekly central bank meeting in the UK, Japan and the United States. Was still cautious. In the states.
Pan-regional Euro stocks 50 futures () and German docs futures () rose 0.5% in early trade, while London futures added 0.24%, indicating that the positive mood is spreading elsewhere.
U.S. stock futures S&P 500 e-Minis () rose 1.3% last week after a mixed session on Wall Street.
Most major markets across Asia are up 0.9% for the second straight session () with the broadest index of MSCI Asia-Pacific shares () outside Japan.
Australian stocks rose () 0.6%, while Japan’s Nikkei () added 0.7%. Chinese stocks started firm, but lasted some initial gains with a blue-chip index of () 0.1%.
On March 11, the World Health Organization (WHO) marked six months since the corona virus was declared an epidemic.
Since then, major global economies have gone into recession and millions have lost their jobs, prompting central banks around the world to launch an unprecedented stimulus.
Policy Pasukka raises financial markets, S&P 500 () up 22%, 10-year Treasury yields 20.4 basis points and Greenback () 3.3%. The most widely used major currency is the Australian dollar
“Actually a wild ride and the Phase 3 vaccine results will begin to continue in the coming weeks,” NAB researcher Tapas Strickland said in a note Monday.
AstraZeneca (L 🙂 said it had resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development, after receiving green light from security monitoring groups.
Post-trial trials of the vaccine, developed with Oxford University researchers, were suspended last week due to illness in a study subject in the UK.
A vaccine has long been expected to help rid the world of the lock-in caused by the corona virus.
“The reopening of the global economy prompts us to recommend a trade for the long term for a basket of 14 high-flying‘ Covit-19 winners ’against 14 lagging‘ return to work ’stocks,” PCA Research wrote in a note.
“While we maintain a cyclical and secular positive outlook in the broader market, short-term correction may be on the cards for technical and (geo) political reasons,” it said.
“There is a short-term traction line that can be operated.”
Later this week, the US Federal Reserve is holding its two-day policy meeting where it is expected to hold rates while describing the shift to the already announced inflation target.
Further, NAB’s Strickland noted that “the central bank has been set less in advance than in the past in tight policy.”
Bank of Japan and Bank of England will announce their respective policy decisions on Thursday.
The market will focus on electing Japan’s new prime minister, and the results of a one-party chamber referendum are expected by 0630 GMT.
Major currencies tread on the water on Monday.
The dollar was at 106.06 against the yen
The euro () flat was 1.1850. The
Among commodities, U.S. crude () rose 0.6% to $ 37.55. Brent crude was up 0.4% at $ 40 a barrel.
Gold was firm with spot prices