Asian shares gain after Wall Street stocks hit record high

Asian shares gain after Wall Street stocks hit record high

Shares across Asia-Pacific rose a day after Donald Trump’s decision to belatedly sign a $900bn stimulus bill helped propel stocks on Wall Street to record highs.

In early trading on Tuesday, Japan’s benchmark Topix added 1 per cent, while Hong Kong’s Hang Seng and Australia’s S&P/ASX 200 gained 0.7 per cent and 0.5 per cent, respectively.

Overnight, Wall Street’s S&P 500 index ended 0.9 per cent higher to surpass a record set in December as investors were buoyed by the US president agreeing to release hundreds of billions of dollars in pandemic spending. Mr Trump had previously refusing to sign the deal, which he had described as a “disgrace”. The technology-focused Nasdaq Composite also closed up 0.7 per cent.

S&P 500 futures were 0.3 per cent higher during Asian trading hours on Tuesday.

In Hong Kong, shares in Chinese technology groups rebounded following concerns of a regulatory crackdown on the sector. Alibaba, the ecommerce group, jumped nearly 6 per cent after falling 8 per cent a day earlier in the wake of a rare public rebuke by Chinese authorities targeting Ant Group, Alibaba’s payments-focused sister company, for alleged regulatory failings.

Internet and gaming company Tencent was also up 2.8 per cent.

Elsewhere in Asia, mainland China’s CSI 300 of Shanghai- and Shenzhen-listed shares slipped 0.2 per cent despite news that the EU and China were poised to sign a long-awaited business investment deal.

In commodities, oil continued to push higher on hopes that increased stimulus spending would boost the US economic recovery. Brent crude, the international benchmark, added 0.5 per cent to $51.11 per barrel. West Texas Intermediate, the US marker, was also up 0.5 per cent to $47.86 per barrel.

The dollar, as measured against a basket of America’s trading peers, slipped 0.2 per cent on the prospect of more fiscal stimulus. Gold, a haven asset that often rises as the greenback falls, rose 0.3 per cent to $1,879.66 per troy ounce.

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