Positive U.S. economic data dampened inflation concerns among Asian investors on Thursday. Stock markets extended their recovery from a two-month low. “The reflation trade is back on,” said Michael McCarthy, chief market strategist at CMC Markets. “We’re seeing a joint rally in bonds and equities and a slight weakening in the U.S. dollar, which also points to improved sentiment.” This is reported by investing.com on its website.
Largest stimulus package in U.S. history passed
Analysts largely expect inflation to rise as vaccines revive the economy. There is concern among investors that additional stimulus in the form of the $1.9 trillion U.S. aid package could overheat the economy. The U.S. Congress had approved the largest stimulus package in U.S. history on Wednesday.
Asian stock exchanges close in the plus
The 225-stock Nikkei index .N225 was 0.5 percent higher at 29,180 points during the session. The broader Topix index .TOPX was up 0.2 percent at 1923 points.
The Shanghai Stock Exchange .SSEC was up 1.7 percent. The index of major companies in Shanghai and Shenzen .CSI300 gained 2 percent.
In Asian currency trading, the dollar gained 0.2 percent to 108.54 yen JPY and eased 0.1 percent to 6.4983 yuan CNY. Against the Swiss currency, it traded little changed at 0.9299 francs CHF . In parallel, the euro EUR= was almost unchanged at 1.1928 dollars and gained 0.1 percent to 1.1092 francs EURCHF . The pound sterling GBP stagnated at 1.3931 dollars.
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