Asian stocks fall on US stimulus uncertainty | Malay Mail

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TOKYO, Aug 12 — Asian stocks dipped today on growing uncertainty over whether the US lawmakers would agree on an additional round of big fiscal stimulus to support an economy still struggling with the novel coronavirus. Hopes of vaccine development, however, prompted some investors to reduce...

A man wearing a protective face mask, following the Covid-19 outbreak, is silhouetted in front of a stock quotation board outside a brokerage in Tokyo, Japan June 15, 2020. — Reuters pic

The mixed sentiment has led to choppy trade in Asia with the index of ex-Japan Asia-Pacific shares shedding 0.76 per cent while Japan's Nikkei gained 0.2 per cent. Barring a bipartisan deal, the US economy could be left with measures US President Donald Trump called for on Saturday through executive orders to bypass Congress.

On top of hedge selling ahead of the largest-ever 10-year note auction later in the day, bonds have lost some of their safe-haven allure also on rising hopes of vaccines against Covid-19. Investors bought back hospitality industries stocks and other value-oriented shares, leading the old-economy centric Dow Jones to outperform high-flying Nasdaq.“As countries around the world seek to support the economy without harsh measures like lockdowns, investors are reviewing if they can keep value shares underweight,” said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

“In today's instance, the vaccine news is likely not sufficient to change the macro narrative, insofar as it is seen as a medical mistake in advancing too quickly through testing procedures,” he said, referring to the Russian vaccine.

 

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