Asian stocks are rising globally in stocks, but oil is falling

A man wearing a face mask, following the outbreak of coronavirus (COVID-19), stands in front of an electrical board showing the Nikkei (top of C) and other countries’ stock indices outside a brokerage house in a business district in Tokyo, Japan, January 4, 2021. REUTERS / Kim Kyung-Hoon / File Photo

HONG KONG, December 8 (Reuters) – Asian equities boosted gains on Wednesday, continuing a global relief rally as markets found positive news in early reports on the potential impact of the Omicron variant, although overnight oil prices began to slow overnight.

“The markets are very sensitive to any little news related to Omicron, and the absence of bad news is taken very positively by the stock markets, but – and I’m not a scientist – it seems too early to signal a clear conclusion.” said Stefan Hofer, investment strategist for the private bank LGT in Asia Pacific

“With each new variant, we go through a period where we wait for a signal from the scientific community, which is difficult for the markets, but that was what we got yesterday.”

MSCI’s broadest index of Asia-Pacific equities outside Japan (.MIAPJ0000PUS) rose 0.3% and Japanese Nikkei (.N225) rose 1%. Futures on the US S&P 500 rose 0.25 percent.

The British drug manufacturer GSK (GSK.L) said on Tuesday that the antibody-based COVID-19 treatment with the American partner Vir Biotechnology is effective against all mutations of the new Omicron coronavirus variant. read more

A South African study on Tuesday also suggested that booster doses of the COVID-19 vaccine produced by Pfizer Inc (PFE.N) and partner BioNTech’s could help prevent infection from Omicron, although the study showed that the new strain could partially avoid protection against two vaccine doses. read more

These reports helped the MSCI World Index of All Countries (.MIWD00000PUS) close 2.1% higher on Tuesday, with the largest percentage increase since November 2020. Oil also rose above 3%.

Markets are also focused on US CPI data coming in on Friday, with a high print that is likely to point decision makers towards accelerating the downsizing of the Federal Reserve’s massive bond buying program that has put a floor below stock prices since the start of the pandemic.

“The rise in aid could be quite short-lived if US data on Friday shows that high inflation looks sticky, or persistent,” – choose a word that is not temporary, Hofer said.

Last week, Fed Chairman Jerome Powell said it might be time to stop seeing inflation as temporary, suggesting that the Fed could accelerate the slowdown.

It should support the dollar, especially against other currencies with more dove-like central banks.

On Wednesday, the dollar changed little compared to a basket of six large companies, although the Australian dollar extended its overnight gains to $ 0.7122, the highest in a week, after falling to a low of 13 months due to of concerns about Omicron and a relatively pigeon-like exchange. bank FRX

Better news and rising commodity prices helped the Aussie, while the rise in oil prices helped the Canadian dollar rise to a policy meeting for the Bank of Canada later Wednesday.

All 29 economists polled by Reuters expect the Bank of Canada to keep interest rates unchanged at 0.25% at the meeting. read more

The reference rate on US 10-year government bonds was slightly lower on Wednesday, but after two days of rising better news about Omicron.

It was last at 1.4614%, a good distance from Friday’s last low of 1.335% when Omicron worries first hit, but also well below the last record before Omicron at the end of November at 1.693%.

The two-year yield, which is rising with expectations of higher interest rates, was 0.6892%, just outside the last peak.

US oil fell 0.45% to $ 71.79 a barrel. Brent oil fell 0.44% to $ 75.11 a barrel.

Spot gold rose 0.3% to $ 1,789 per ounce, within the last range, and rival inflation hedging, bitcoin was also calm after an exciting weekend, barely changing to $ 50,600.

Reporting by Alun John, editing by Richard Pullin

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