Asian Stocks Up Over Expectations of Further U.S. Stimulus, Trump Impeachment
Asia Pacific stocks were up on Thursday morning, following a mixed session for U.S. shares, over continued expectations of further U.S. stimulus measures and as investors digested the U.S.’ decision to impeach incumbent President Donald Trump.
China’s Shanghai Composite was down 0.38% by 9:38 PM ET (2:38 AM GMT) and the Shenzhen Component slid 2.10%. Trade data released earlier in the day was positive, with all metrics outperforming. Exports grew 18.1% year-on-year, imports grew 6.5% year-on-year and the trade balance was $78.17 billion in December.
Chinese tech companies Alibaba Group Holdings Ltd. and Tencent Holdings Ltd. saw gains in their U.S. shares after reports that the duo could be spared from a U.S. investment ban.
Hong Kong’s Hang Seng Index was up 0.21%. Police have reportedly arrested 11 individuals for aiding a group of 12 people to flee the city.
Japan’s Nikkei 225 jumped 1.45%. South Korea’s KOSPI inched up 0.04% and in Australia, the ASX200 gained 0.48%.
U.S. Treasury yields saw their first full-session decline in 2021 after rising for six consecutive sessions as investors expect more spending by the incoming Joe Biden administration. An auction of $24 billion in 30-year bonds was also well bid, which dragged yields down further.
However, yields are expected to resume their climb, partly due to expectations of further stimulus packages from the Biden administration, which takes office in the following week.
Mainland Chinese stocks were down by the early morning. The Shanghai Composite was down by 0.29% to 3,588.05. Hong Kong’s Hang Seng Index was up about 0.48% to 28,374.25.
Japan’s benchmark Nikkei average. Nikkei 225 is trading up 1.26 per cent at 28473.03 on Thursday, while the broader TOPIX 100 rose 1.12 per cent to 1,227.87. South Korea’s Kospi was up by 0.07% to 3150.88.