European stocks soar, Asian shares mix on hope of global recovery

Gulf Today Report 

European stocks gained on Monday on optimism about a solid start to the earnings season offset a worrying resurgence in COVID-19 cases globally.

The pan-European STOXX 600 index rose 0.1% by 07:06 GMT while an index of eurozone shares rose 0.2%, touching its highest since September 2000.

The gains were led by automakers, soaring by 0.7%, then miners and travel stocks followed respectively. 

Asian shares

Asian shares mixed on Monday following hope of global economic recovery from the pandemic.

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Japan's benchmark quickly lost early gains and fell 0.1% to 29,642.79, Australia's S&P/ASX 200 gained 0.4% to 7,093.20, while South Korea's Kospi added 0.4% to 3,212.41. Hong Kong's Hang Seng lost 0.4% to 28,856.21. The Shanghai Composite inched down 0.1% to 3,421.96. 

The decline in Japan’s benchmark was the first market reaction after a summit by Prime Minister Yoshihide Suga with President Joe Biden over the weekend. 

Concerning vaccination, Japan is lagging in vaccine rollout. However, Suga has spoken with Pfizer chief executive, asking for a steady supply of the COVID-19 vaccine. 

Japan has never had a lockdown, and its laws would need to be changed for such action. 

Yoshimasa Maruyama, chief market economist at SMBC Nikko Securities, said that although the promised vaccine after Suga's US visit works as a plus for Japan, their agreement to take a stiffer stance on China adds to investor worries because of China's importance for the Japanese economy.