Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Asian markets slipped following a sell-off on Wall Street fuelled concerns about the Federal Reserve's stimulus programme/AFP


Asia stocks lifted as Biden gets White House access

Hong KongChina, Nov 24 – Most Asian markets rose Tuesday as news that Donald Trump’s team will now work with Joe Biden to begin his transition into the White House built on optimism that vaccines could soon be rolled out around the world.

However, the mood on trading floors continues to be tinged by surging virus infections and deaths that have forced governments to impose or consider reimposing economically painful containment measures.

Trump late Monday eased some lingering post-election uncertainty by saying the agency that works with incoming administrations would now work to assist Biden’s team.

The president tweeted that it was time for the General Services Administration to “do what needs to be done”, though he remained steadfast in his claim that he won the election and would carry on with legal challenges to the result.

While the broad consensus has been that Trump would eventually admit defeat, there have been concerns about his refusal to allow Biden to begin work on pandemic response measures and national security matters.

“The power vacuum in Washington looks to be sucking less life out of the markets after the General Service Administration gave the nod to Biden as the apparent winner of the US election,” said Axi strategist Stephen Innes.

The news came as Biden tipped former Federal Reserve boss Janet Yellen for Treasury Secretary, a move welcomed by traders particularly after incumbent Stephen Mnuchin last week sparked a spat with the central bank over access to virus relief cash.

“A strong spirit of cooperation between the Fed and Treasury is one thing of which we can now be assured,” said National Australia Bank’s Ray Attrill.

All three main New York indexes rose Monday, helped by news that Britain’s AstraZeneca and the University of Oxford had said they will seek regulatory approval for their vaccine, adding to hopes for a return to normal after similar announcements by Pfizer/BioNTech and Moderna.

Advertisement. Scroll to continue reading.


– Dark days ahead –

US dealers also welcomed data showing a forecast-beating rise in activity in both the US services and factory sectors in November.

Tokyo soared more than two percent as investors returned from a long weekend.

Sydney piled on more than one percent with Singapore and Seoul also chalking up healthy gains. Wellington and Jakarta rose though Hong Kong could only eke out small gains on growing concerns about a spike in infections in the city.

Shanghai and Manila fell while Taipei was barely moved.

However, while the long-term outlook brightens, countries from the US, across Europe and increasingly in Asia again are seeing a rise in infections. And with the northern hemisphere winter approaching there are warnings of worse to come, which could deal another blow to the global economy.

“Sadly, the next few months are likely to see the worst of the pandemic in cases and fatalities,” David Kelly, at JP Morgan Asset Management, said in a note.

“In addition, over the same few months a heightened disruption to certain industries will likely lead to a sharp slowdown in both GDP and employment growth.”

“Despite this, the distribution of a vaccine in 2021 will almost certainly trigger a very strong economic revival and by 2022, the economy should be well on its way to a full recovery.”

Advertisement. Scroll to continue reading.

But Kelly warned that the US economy faced further pain if lawmakers cannot come to an agreement on a new stimulus any time soon, with Republicans refusing to give way to Democrat demands for a multi-billion-dollar package.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...