Asian stocks jump on the back of US stimulus, Japan’s Nikkei index at a 29-year high by Reuters

© Reuters. A man wearing a protective face mask walks in front of a stock price board outside a Tokyo brokerage firm

NEW YORK (Reuters) – Asian stocks jumped on Tuesday as Japanese stocks reached their highest level in 29 years, amid hopes to expand the long-awaited US relief package from the pandemic and support a trade deal with Britain’s exit from investors’ appetite for risk.

0.9% jumped to its highest level since March 1991, while Australian shares jumped 0.7% and futures added 0.3%.

The US House of Representatives had previously voted to increase the stimulus payments to eligible Americans to $ 2,000 from $ 600, and to send the measure to the Senate for a vote.

While it is not clear how the measure will be implemented in the Senate, President Donald Trump’s signature on Sunday of the $ 2.3 trillion anti-pandemic bill, which included $ 600 payments, sent stocks on Wall Street to record highs overnight as it increased. Optimism about the economy. Recover. ()

“With Brexit … and the US stimulus deal now in the rearview mirror, there is a relief that we avoided the worst case scenario involved,” said Stephen Innes, Axi’s chief global market strategist. broker.

Strong demand for riskier assets has kept the US dollar, often seen as a “safe haven” asset, in the back. It is down 0.02% against a basket of major currencies.

Dollar short selling has been a popular trade recently, and Reuters calculations based on data released by the CFTC on Monday indicate that this may continue. Dollar short positions swelled in the week ending December 21 to $ 26.6 billion, the highest in three months.

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The pound retreated to $ 1.3462 as investors continued to profit from the currency after confirmation last week of the widely expected UK-EU trade deal.

The dollar’s slowdown boosted gold prices, which rose 0.4% to $ 1,878.76 an ounce. [GOL/]

Oil prices recovered slightly after falling overnight due to concerns that new travel restrictions against the backdrop of the COVID-19 pandemic will weaken fuel demand, and with the potential for increased supply to affect prices. [O/R]

It rose 0.48% to $ 47.85 a barrel.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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