BEIJING — Asian stocks were mostly higher Tuesday after Wall Street rose to a new record.
Overnight, Wall Street’s benchmark S&P 500 index closed 0.7% higher. Investors were encouraged by company earnings, news that a surge in coronavirus cases is easing, progress in distributing vaccines and the possibility of government stimulus.
Despite concern prices might be rising too fast, investor optimism means “the momentum behind this reflation trade remains a force to reckon with,” said Jingyi Pan of IG in a report.
The Shanghai Composite Index
SHCOMP,
gained 1.2% and the Nikkei 225
NIK,
in Tokyo rose 0.2%. The Hang Seng in Hong Kong
HSI,
rose 0.4%.
The Kospi
180721,
in Seoul advanced 0.2% and Sydney’s S&P/ASX 200
XJO,
shed 0.5%. Stocks in New Zealand
NZ50GR,
retreated while Singapore
STI,
and Jakarta
JAKIDX,
advanced.
On Wall Street, the S&P 500
SPX,
rose 28.76 points to 3,915.59. The Dow Jones Industrial Average
DJIA,
gained 0.8% to 31,385.76. The Nasdaq composite
COMP,
climbed 1% to 13,987.64.
In Washington, President Joe Biden and Congressional Democrats appear to be moving forward with a $1.9 trillion coronavirus stimulus plan. That includes a rise in the federally required minimum wage and cash aid to households.
“Market participants doubled down on fiscal stimulus bets” after U.S. Federal Reserve officials downplayed concerns the spending might fuel inflation, said Mizuho Bank in a report.
In another sign of optimism, Treasury yields continued to push mostly higher. The yield on the 10-year Treasury note rose to 1.17% from 1.15% late Friday, more than double where it was six months ago. While there have been near-zero signs of inflation in recent months, investors believe improving economic fortunes and trillions of dollars in stimulus could make stocks more attractive, and therefore make bond yields rise as their prices fall.
In energy markets, benchmark U.S. crude
CLH21,
rose 50 cents to $58.47 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.12 on Monday to $57.97. Brent crude
BRNJ21,
used to price international oils, gained 56 cents to $61.12 per barrel in London. It advanced $1.22 the previous session to $60.56.
The dollar
USDJPY,
fell to 104.92 yen from Monday’s 105.22.
