Picture used for illustrative purpose. File
Asian markets were mixed Thursday as investors juggled hopes for a new stimulus deal in Washington with concerns about the virus and another flare-up between China and the United States.
Optimism over the development of a vaccine and a wall of government and central bank cash is providing much-needed support to equities as traders fret over a spike in new infections around the world and the re imposition of containment measures in the US and other key economies.
European leaders lifted sentiment this week when they finally agreed on an $860 billion rescue package for the eurozone, putting the focus on US lawmakers, with their earlier multi-trillion-dollar programme -- which gives cash to households -- about to wind down.
Republicans have been struggling to come up with a bill to counter a $3.5 trillion Democrat proposal, fanning concerns they will not come up with anything ahead of an August break.
However, reports said Mitch McConnell would soon unveil a $1 trillion plan after overcoming some differences with the White House.
Analysts said that while it may take some time, a package is expected to be ready for Donald Trump to sign off, with no-one wanting to be seen to deny money to the poorest ahead of a general election.
Indications a deal could be done helped Wall Street into positive territory, with dealers also cheered by an announcement from German firm BioNTech and Pfizer that the government had agreed to pay almost $2 billion for 100 million doses of a potential vaccine if regulatory approval is granted.
Markets rose last week after unexpectedly strong U.S. jobs data despite some American states reporting record new coronavirus infections.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.3% and further away from a four-month top hit last week. Japan's Nikkei shed 2.2% and Chinese blue chips 0.9%.
All major Asian indexes were upbeat with Japan's Nikkei rising 0.1%, China's blue-chip index adding 1.7% while Hong Kong's Hang Seng index climbed 1.8%.
Asian shares posted gains on Monday and the euro rose to four-month highs, as EU leaders appeared to make some headway after three days of haggling on a plan to revive their economies, even as coronavirus cases increased in many countries.
The Reserve Bank of India (RBI), the country’s central bank, on Friday has kept key interest rates steady to subdue the unabatedly high inflation rate. However, the Monetary Policy Committee (MPC) of the central bank (CB) maintained the growth-oriented
London FTSE 100 rose 0.8% as crude prices gained while in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.78%.
Global trade, shipping business and supply chain industry will return to growth next year following positive news on the coronavirus vaccine that will help restore confidence in the economy, experts say.
The Indian-based firm Indus Net Technologies (INT) is keen to expand its operations across the Gulf region. We have been serving clients in the Middle East for over a decade. However, we will now look for a stronger presence in this market from 2021 onwards.