NEW YORK, Oct 21 — Asian stocks were set for modest gains today after renewed US stimulus hopes helped Wall Street higher, although wobbles in the tech sector could keep a lid on investor sentiment.
Australian stocks opened slightly higher while MSCI’s gauge of stocks across the globe was roughly flat. The Nikkei 225 futures were up 0.25 per cent.
“It will be quite a mixed day,” said Ryan Felsman, senior economist at CommSec. “People are digesting the potential for a stimulus bill, and markets are very cautious on the back of that.”
Hong Kong’s Hang Seng index futures were up 0.24 per cent.
The White House and Democrats in the US Congress moved closer to agreement on a new coronavirus relief package yesterday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party. Negotiations will continue today, an aide to top US Democrat Nancy Pelosi said.
On Wall Street, shares of Google parent company Alphabet rose despite an antitrust lawsuit against it by the US Justice Department.
Netflix, however, reported disappointing earnings, leading its shares to fall 6 per cent after trading hours, a development that could cause an “overhang” in Asian trading, Felsman said.
The Dow Jones Industrial Average was up 0.40 per cent and the S&P 500 was up 0.47 per cent. The tech-heavy Nasdaq Composite rose 0.33 per cent.
The US dollar softened yesterday, hitting a one-month low against a basket of major currencies, as investors awaited the outcome of the fiscal stimulus talks and as coronavirus cases spiked in Europe.
The dollar index fell 0.411 per cent.
Benchmark US Treasury yields hit four-month highs yesterday on hopes lawmakers could agree on a stimulus package.
Oil prices also rose on optimism about a possible stimulus agreement, but the threat to demand from rising Covid-19 cases worldwide and increased output from Libya kept prices from moving higher. — Reuters
