Asian shares rise, oil rise on restoration bets

© Reuters. FILE PHOTO: The screen shows the Nikkei stock average and stock indices outside of a Tokyo broker

By Chibuike Oguh

NEW YORK (Reuters) – Asian stocks mostly opened higher on Wednesday, tracking modest gains on Wall Street as prospects of an eventual victory over coronavirus supported hopes of a rebound while tight supply expectations pushed oil prices to their highest level in history Year drifted.

Investors are betting that Biden's future administration would accelerate the spread of coronavirus vaccines in the U.S., which could reopen large swaths of the U.S. economy, said Peter Essele, head of portfolio management at Commonwealth Financial Network in Boston.

"The pent-up demand is slowly unwinding and is likely to result in one of the strongest increases in 20 years next year and the markets are pricing that in," said Essele.

"Right now there is a race between cases and the vaccine and the vaccine will eventually prevail and the curve will flatten out."

Asia’s Open, however, was mixed up, with 225 up 0.11%, Australia down 0.1%, and South Korea up 0.64%.

On Wall Street, stocks fluctuated almost unchanged during the session, not far from record highs. The Dow rose 0.19%, gained 0.04% and added 0.28%.

The US 10-year yield hit its highest level since March, but fell to almost unchanged the day after a well-bid Treasury auction. The return had risen sharply this year due to expectations of a massive stimulus package from the future democratic government.

Democrats said they would give Republican President Donald Trump one last chance on Tuesday to leave office days before his term ends or face an unprecedented second impeachment for his followers' deadly January 6 attack on the U.S. Capitol .

Impeachment proceedings could continue even after Trump left January 20. However, analysts assume that no further political turbulence in Washington will affect the markets.

"The markets since the elections have been pretty strong because the uncertainty factor has been removed," said Essele.

In the oil markets, prices hit their highest level since February as tighter supply and expectations of a decline in US inventories offset concerns about rising COVID-19 cases worldwide. Saudi Arabia plans to cut production by another 1 million barrels a day in February and March.

Brent was at $ 56.56, up 1.62% on the day, while it recently rose 1.76% to $ 53.17 a barrel.

The U.S. government's 10-year benchmark debt last rose 1/32 to 1.1325%, down from 1.134% late Monday. The return was 1.187% at the start of the session.

The US dollar fell a day after its December high, and tighter government bond yields pushed the greenback lower.

That fell 0.463%, the euro rose 0.45% to USD 1.2204. The Japanese yen rose 0.49% against the greenback to 103.75 per dollar.

Safe-Haven rose 0.6% to $ 1,855.46 an ounce. Silver was up 2.49% to $ 25.54.

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