Market Close Nov 30

Investors take profits after solid November rally

Profit-taking sparks retreat after strong rally; Vaccine hopes keeps undertone firm; Gold, dollar and US Treasuries shunned reflecting upbeat undertone

Investors take profits after solid November rally
Oil prices will struggle to gain upward traction next year as demand remains in the grip of the coronavirus pandemic despite growing optimism over vaccines and a likely extension of output cuts by top producers, a Reuters poll showed on Monday. Image: Reuters.

(ATF) Hong Kong: Asian markets fell across the board as investors took profits after a record rally this month following major progress toward a coronavirus vaccine.

The undertone remains upbeat despite all major stock markets ending with losses for the day, as investors eyed the economic rebound in the fastest recovering region in the world.

“Vaccine optimism has driven risk appetite and stock markets higher across November. Over the past month Pfizer, Moderna and AstraZeneca have all revealed upbeat results from their clinical trials,” Fiona Cincotta, a financial markets analyst at Gain Capital, said.

“A vaccine is the quickest and surest way for global growth to return to pre-pandemic levels.”  

Reflecting the firm undertone, the US dollar against a basket of currencies, fell 0.2% to 91.63 and gold dropped 1% to $1,770 per ounce. US Treasuries also fell with the 10-year yield rising 1.5 basis points to 0.86%.

Economic recovery and rising hopes of a return to normalcy is driving the upbeat mood. 

China's factory activity expanded at the fastest pace in more than three years in November as the world’s second largest economy extended its rebound from the coronavirus pandemic shock.

“Today's PMI readings showed China's recovery has continued to pick up. In our view, we think this decreases the likelihood of further monetary easing this year, and we expect the LPR to remain on hold through 2021,” Erin Xin, HSBC’s Economist for Greater China, said.

“That said, labour market pressure persists and the recovery in the private sector is still lagging behind. Thus, we expect policymakers are unlikely to shift to a tightening stance anytime soon.”

Japan’s Nikkei 225 index fell 0.79%, Australia’s S&P ASX 200 eased 1.26%, Hong Kong’s Hang Seng index tumbled 2.06%, and China’s CSI300 dropped 0.41%. The MSCI Asia Pacific index retreated 1.56%

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Asia Stocks

· Japan’s Nikkei 225 index fell 0.79%

· Australia’s S&P ASX 200 eased 1.26% 

· Hong Kong’s Hang Seng index tumbled 2.06%

· China’s CSI300 dropped 0.41%

· The MSCI Asia Pacific index retreated 1.56%.

Stock of the day

Oil and gas giant CNOOC fell as much as 14% after a report the Trump administration is about to add China’s national offshore oil and gas producer to a blacklist of alleged Chinese military companies.

Asian markets November rally Markets down Profit-taking vaccine hopes Covid-19 Undertone upbeat China data strong