· Asia shares turn lower as recovery concerns resurface
Asian shares stumbled lower in afternoon trade on Friday, reversing earlier gains as rising COVID-19 cases in China reinforced investor concerns over the prospects for a global economic recovery.
Earlier on Friday, an Asian regional share index had edged near record highs after U.S. President-elect Joe Biden proposed a $1.9 trillion stimulus plan to jump-start the world’s largest economy and accelerate its response to COVID-19.
In prime-time remarks, Biden outlined a proposal that includes $415 billion aimed at the COVID-19 response, some $1 trillion in direct relief to households, and roughly $440 billion for small businesses and communities hard hit by the pandemic.
But that initial boost faded by the afternoon as risk appetite waned, lifting bond prices and the dollar, and hitting regional equities.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.59%.
· Nikkei eases from over 30-year high; tech gains cap declines
Japan’s benchmark Nikkei stock average snapped a five-session rally on Friday, slipping from a more than 30-year high hit in the previous session, while losses were capped by tech shares after Taiwanese chipmaker TSMC posted its best-ever quarterly profit.
The Nikkei closed down 0.62% to 28,519.18, after hitting a fresh high since August 1990 on Thursday. But it was set for its third straight weekly gains, up 1.35% for the week.
The broader Topix fell 0.89% to 1,856.61.
· European markets close higher as vaccine and U.S. stimulus hopes boost sentiment
European stocks closed higher Thursday as hopes of substantial fiscal stimulus from the incoming U.S. administration and positive Covid-19 vaccine news boosted sentiment.
The pan-European Stoxx 600 ended the session up by 0.7%, with travel and leisure shares climbing 1.9% to lead gains while utilities slid 0.4%.
European markets started the trading day on a cautious note, as investors monitored the ongoing battle with a rise in coronavirus cases. Vaccination rollouts across the continent have raised hopes that an end to the pandemic is on its way, however.
Reference: CNBC, Reuters
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