Asia’s stock markets opened higher today, as vaccine optimism offset worries about rising coronavirus cases in Europe and new lockdowns in the United States. — Reuters pic
S&P 500 futures rose 0.7 per cent following the index’s record closing high on Friday and futures pointed to positive a positive start to the week in Hong Kong. “There’s just mountains of cash sitting on the sidelines, waiting to be put to work and since we’ve got this vaccine news, as well as diminished risk around the US elections, all of this is flying into equities,” said Kyle Rodda, analyst at IG Markets. “Everyone’s thinking now that it’s the cue to get in.”
Fifteen Asia-Pacific economies, including China and Japan but excluding the United States agreed to a trade deal over the weekend which, although light on detail or immediate tariff cuts, is a landmark pact for East Asian exporters. The departure of hardline adviser Dominic Cummings from Downing Street last week may leave more room for British compromises, but chief negotiator David Frost said on Twitter that talks “may not succeed”.
The risk-sensitive Australian dollar bought US$0.7284 and was steady ahead of a week of central bank speeches and significant data, beginning with Reserve Bank of Australia Governor Philip Lowe at 0840 GMT.