Asian shares catch global equities rally, but oil slips

Hong Kong, Dec. 8 (BNA): Asian stocks extended gains on Wednesday, continuing the global relief rally as markets found positive news in early reports on the potential impact of the Omicron variant, although the overnight advance in oil prices is starting to fade.

“Markets are very sensitive to any slight new element related to Omicron, and the absence of bad news is taken very positively by the stock markets, although – and I am not a scientist – it seems too soon to make everything clear,” said Stefan Hofer, chief investment strategist. At LGT Private Bank Asia Pacific “With each new variant, we are in the process of waiting for some signals from the scientific community, which is tough for the markets, but that’s what we got yesterday.”

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% and Japan’s Nikkei rose 1%. US S&P 500 futures rose 0.25%.

British drugmaker GSK said on Tuesday that its COVID-19 antibody-based treatment with US partner Vir Biotechnology is effective against all mutations in the novel coronavirus variant Omicron, according to Reuters.

A South African study on Tuesday also suggested that booster doses of the COVID-19 vaccine produced by Pfizer Inc and partner BioNTech could help stave off infection from Omicron, although the study showed the new strain could partially evade protection from two doses of the vaccine. .

These reports helped the MSCI All-Country Global Index to close 2.1% higher on Tuesday, its biggest percentage gain since November 2020. Oil also rose more than 3%.

Markets are also focused on US CPI data due for release on Friday, as the higher reading is likely to direct policy makers towards accelerating the Fed’s massive bond-buying program that has put a floor on stock prices since the start of the pandemic.

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“The comfortable rally could be short-lived if US data on Friday shows that high inflation appears flat or flat” — choose a word that is not temporary, Hoover said.

Federal Reserve Chairman Jerome Powell said last week that it might be time to stop seeing inflation as temporary, and hinted that the Fed could accelerate tapering.

This should support the dollar, especially against other currencies with more dovish central banks.

On Wednesday, the US currency was little changed against a basket of six major peers, although the Australian dollar extended its overnight gains to $0.7122, its highest level in a week, after falling to a 13-month low on concerns about Omicron and a relatively pessimistic central position. . bank FRX Better news and higher commodity prices helped the Australian dollar; The rebound in oil prices helped the Canadian dollar higher at the Bank of Canada policy meeting later on Wednesday.

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

The US 10-year Treasury yield fell slightly on Wednesday, but after two days of gains on the back of better news on Omicron.

It was last at 1.4614%, up from Friday’s low of 1.335% when Omicron concerns first hit, but also well below the previous high before Omicron in late November at 1.693%.

The two-year yield, which rose on expectations of higher interest rates, was at 0.6892%, shy of its recent high.

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

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Spot gold rose 0.3% to $1,789 an ounce, within its latest range, and rival inflation hedges, Bitcoin was also quiet after a thrilling weekend, barely changed at $50,600.

HF

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