A trader passes in front of the New York Stock Exchange in New York, the US, on December 9 2020. Picture: BLOOMBERG/MICHAEL NAGLEAsian stocks drifted lower on Tuesday as worries about increasing Covid-19 deaths and lockdowns overshadowed optimism about the rollout of coronavirus vaccinations.
“Considerable uncertainty surrounds the timeline for rollout, but safety milestones could be met by about mid-2021,” economists at Westpac said in a note. “Meanwhile several jurisdictions continue to struggle with outbreaks with a particularly notable rise in cases in the US,” they said. On Monday, tighter Covid-19 restrictions were imposed on London as the government citing increased infection rates that may be partly linked to a new variant of the coronavirus.
“We now know we are building a bridge to somewhere, providing clarity for policymakers, households and companies about getting to a post-Covid stage,” strategists at BlackRock Investment Institute said in a report. “Yet disappointing jobs data in recent weeks pointed to near-term risks as the virus surges around the US, potentially slowing the restart,” they said.
The dollar traded near two-and-a-half-year lows against peers as demand for the safest assets flagged.