Asian shares fall, break from report month

© Reuters.

From Gina Lee – Asia Pacific stocks mostly fell Monday morning, taking a breather after a record month as November ended.

“The markets are overbought and there is a risk of a short-term pause. However, we are now in a seasonally strong time of year and investors have yet to completely rule out the potential for a very strong rebound in growth and earnings over the next year as stimuli combine with vaccines, ”said AMP (OTC :), head of Capital's investment strategy, Shane Oliver told Reuters.

However, positive Chinese production data and hopes for an economic recovery driven by COVID-19 vaccines, as well as the possibility of further stimulus from central banks, helped ease some COVID-19 worries in the short term.

China's rose 1.13% to 11:04 p.m. (3:04 p.m. GMT) while the value fell 0.41%. Data released earlier in the day showed November growth was 52.1% higher than the 51.5% growth forecast by and 51.4% in October. The value was also better than expected, rising 56.4% in November from the forecast 56% and the 56.2% value in October.

Tensions between the US and China are rising again as President Donald Trump's administration is reported to blacklist Semiconductor Manufacturing International Corp and China National Offshore Oil Corp. as Chinese military companies are blacklisted.

Hong Kong is down 0.18%. Schools across the city had an early Christmas break after the government ordered them to close. In Hong Kong, 115 COVID-19 cases were recorded daily on Sunday.

Japan rose by 0.01% and grew by 3.8% in October compared to the previous month. This is evident from data released earlier in the day. However, the number was slightly lower than September's 3.9% growth.

South Korea fell 0.29% and Australia fell 0.71%. The Reserve Bank of Australia will hold its political meeting on Tuesday.

Meanwhile, global stocks rose 13% as November ended. Recent positive news about the development of a COVID-19 vaccine has bolstered hopes of a global economic recovery and sentiment among investors despite remaining production and supply problems. Goldman Sachs (NYSE 🙂 also expects a large portion of the population in major industrialized countries to be vaccinated by mid-2021, resulting in a "strong pickup" in global growth.

“As long as the economic data can improve, the cyclical areas can outperform. These cyclical domains should benefit from the environment we are entering after vaccination and greater normalization, ”AMP Nader Naeimi, multi-asset fund manager at Capital Investors Ltd., told Bloomberg.

Federal Reserve Chairman Jerome Powell will testify in front of Congress on Tuesday and Wednesday. US labor market data, including that, is also due later in the week.

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