DM Monitoring
HONG KONG: Asian markets were mixed Thursday as investors kept an eye on US stimulus progress and the rollout of vaccines, while the pound was holding around 19-month highs on Brexit optimism, though surging infections and new lockdowns were keeping the mood subdued.
Lawmakers on both sides said they were hopeful of passing a much-needed rescue package for the troubled US economy as they haggle over details of a bipartisan proposal that appears to have broken months of deadlock.
With the two most contentious items removed from the plan, which is said to amount to around $900 billion, Republican Senate Majority Leader Mitch McConnell said leaders “made major headway toward hammering out a targeted pandemic relief package that would be able to pass both chambers with bipartisan majorities”.
He added they had “agreed that we will not leave town until we’ve made law”, while top Senate Democrat Chuck Schumer said: “It’s not a done deal yet, but we are very close.”
OANDA analyst Craig Erlam said that there was chatter about a possible vote on Capitol Hill at the weekend.
Wall Street ended broadly higher with the Nasdaq chalking up another record, but Asia struggled to gain traction with hopes for a new stimulus offset by the imposition of strict containment measures around the world as coronavirus infection and death rates spike.
Tokyo and Hong Kong were flat, while Shanghai edged up slightly and Wellington rallied on data showing New Zealand’s economy grew more than expected in the third quarter. There were also gains in Sydney and Jakarta but Seoul, Taipei, Singapore and Manila all slipped.
As the stimulus talks continued, the Federal Reserve held its final policy meeting of the year at which it gave an upbeat assessment of the outlook for the world’s top economy next year and pledged to maintain its huge bond-buying, monetary-easing programme until it is back on an even keel.
