Asian shares catch global equities rally, but oil slips
By Alun John
HONG KONG, Dec 8 (Reuters) - Asian shares extended gains on Wednesday, continuing a global relief rally as markets found positive news in early reports about the potential impact of the Omicron variant, although overnight advances in oil prices began to peter out.
"Markets are very sensitive to any slight new item relating to Omicron, and the absence of bad news is being taken very positively by equity markets, though - and I'm not a scientist - it seems too early to signal an all clear," said Stefan Hofer, chief investment strategist for private bank LGT in Asia Pacific
"With each new variant, we go through a period of waiting for some signal from the scientific community, which is difficult for markets, but that's what we got yesterday."
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.3% and Japan's Nikkei .N225 rose 1%. U.S. S&P 500 futures ESC1 rose 0.25%.
British drugmaker GSK GSK.L said on Tuesday its antibody-based COVID-19 therapy with U.S. partner Vir Biotechnology is effective against all mutations of the new Omicron coronavirus variant.
Also a South African study on Tuesday suggested that booster doses of the COVID-19 vaccine produced by Pfizer Inc PFE.N and partner BioNTech's BNTX.O could help to fend off infection from Omicron, even though the study showed the new strain can partially evade the protection from two vaccine doses.
Those reports helped MSCI's all-country world index .MIWD00000PUS to close 2.1% higher on Tuesday, in its biggest percentage gain since November 2020. Oil also rose over 3%.
Markets are also focused on U.S. CPI data due Friday, with a high print likely to point policy makers towards accelerating the tapering of the Federal Reserve's massive bond buying programme which has put a floor under equity prices since the start of the pandemic.
"The relief rally could be quite shortlived if U.S. data on Friday shows high inflation is looking sticky, or persistent," - pick a word that isn't transitory," said Hofer.
Last week Fed Chair Jerome Powell said it might be time to stop seeing inflation as transitory and hinted the Fed might speed up tapering.
That ought to support the dollar, particularly against other currencies with more dovish central banks.
On Wednesday the greenback was little changed against a basket of six major peers =USD , although the Australian dollar AUD=D3 extended its overnight gains to $0.7122, its highest in a week, having fallen to a 13-month low due to worries about Omicron and a comparatively dovish central bank
Better news and rising commodity prices helped the Aussie, while the rebound in oil prices helped the Canadian dollar CAD=D3 to rise into a Bank of Canada policy meet later Wednesday.
All 29 economists polled by Reuters expect the Bank of Canada to keep rates unchanged at 0.25% at the meeting.
The benchmark U.S. 10-year Treasury yield US10YT=RR edged a little lower on Wednesday, but after two days of gains on better news about Omicron.
It was last at 1.4614%, well up from Friday's recent low of 1.335% when Omicron worries first hit, but also well short of its pre-Omicron recent high in late November of 1.693%.
The two-year yield US2YT=RR , which rises with expectations of higher interest rates, was at 0.6892% just shy of its recent top.
U.S. crude CLc1 dipped 0.45% to $71.79 a barrel. Brent crude LCOc1 fell 0.44% to $75.11 per barrel.
Spot gold XAU= rose 0.3% to $1,789 an ounce, within its recent range, and rival inflation hedge, bitcoin BTC=BTSP was also calm after an exciting weekend, barely changed at $50,600.
World FX rates YTD Link
Global asset performance Link
Asian stock markets Link
Reporting by Alun John, editing by Richard Pullin
Mga Kaugnay na Asset
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.