Sunday, 5 December, 2021

Asian markets rise after Wall St record

Asian markets rise after Wall St record

Popular News

HONG KONG: Asian markets mostly rose Tuesday following another record on Wall Street, while bitcoin hit a new peak with optimism over the recovery outlook edging out long-running inflation fears, with predictions for even more gains to come.

Traders have been in buoyant mood since the US Federal Reserve last week unveiled its plan for withdrawing its vast financial support but said it would move cautiously in raising interest rates. Analysts said other central banks had been less keen to tighten policy than investors had expected, reports AFP.

Still, the Fed on Monday warned in a closely watched report that the rally across markets could quickly reverse if there was another Covid surge or the recovery stalls, and also raised concerns about the possible impact of China’s property crisis.

All three main indexes in New York hit record highs for the second day in a row helped by news that US lawmakers had passed President Joe Biden’s $1.2 trillion infrastructure overhaul, and as the country reopened to vaccinated visitors from more than 30 countries.

That all came on top of a strong earnings season and after Pfizer’s announcement that a pill to treat Covid had proved to be hugely effective, putting the world another step closer to overcoming the disease.

Markets analyst Louis Navellier said he was very upbeat about the outlook.

“I think that at the end of January, we’re going to be 18 percent to 20 percent higher than we are today,” he said in a note. “That’s a bold statement. But we’ve got a lot of earnings coming out, seasonal strength and an accommodative Fed.”

Asia, which struggled Monday, mostly managed to follow Wall Street’s lead.

Hong Kong, Shanghai, Seoul, Wellington, Taipei, Manila, Bangkok and Jakarta all rose, though Tokyo, Sydney, Mumbai and Singapore edged down.

London and Paris were down in early trade, while Frankfurt rose.

Bitcoin hit a new record of $68,513 as the combined value of all cryptocurrencies topped $3 trillion, according to data provider CoinGecko.

“This breakout in bitcoin might signal the start of a final push-up for the fourth quarter before the crypto market shows more pronounced consolidation into next year,” Fundstrat said in a technical-strategy report Monday.

“Strength in bitcoin, ethereum and many other altcoins looks likely in the weeks to come.”

Still, the spectre of inflation continues to loom large, with prices at multi-year highs owing to supply chain snarls, surging energy costs and a pick-up in demand as the economy returns to normal.