SYDNEY, RAW – Asian shares are hovering near record highs as oil edges closer to $US60 a barrel on hopes a $US1.9 trillion US coronavirus aid package will eventuate just as coronavirus vaccines are being rolled out globally.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.2 per cent at 717.2, not far from last week’s record high of 730.6.
Japan’s Nikkei climbed 0.3 per cent while Australian shares advanced 0.5 per cent led by technology and mining shares.
E-mini futures for the S&P 500 rose 0.3 per cent in early Asian trading.
Hopes of a quicker economic revival and supply curbs by producer group OPEC and its allies pushed oil to its highest level in a year.
Global equity markets have scaled record highs in recent days on hopes of faster economic revival led by successful vaccine rollouts and expectations of a large US pandemic relief package.
On Friday, the Nasdaq and S&P 500 hit all-time highs on stronger-than-expected fourth-quarter corporate results and with companies on track to post earnings growth for the first quarter instead of decline.
The rallies came even as data painted a dour picture of the country’s labour market with payrolls rising by 49,000, half of what economists were expecting.
The weak report spurred the push for more stimulus, underscoring the need for lawmakers to act on President Joe Biden’s $US1.9 ($A2.5) trillion COVID-19 package.
Biden and his Democratic allies in Congress forged ahead with their stimulus plan on Friday as lawmakers approved a budget outline that will allow them to muscle through in the coming weeks without Republican support.
US Treasury Secretary Janet Yallen predicted the United States would hit full employment next year if Congress can pass its support package.
“That’s a big call given full employment is 4.1 per cent, but one that will sit well with the market at a time when the vaccination program is being rolled out efficiently in a number of countries,” said Chris Weston at Pepperstone in Melbourne.
In currencies, the US dollar came off a four-month high against the Japanese yen to be last at 105.39 following the weak jobs report.
The euro edged up slightly after rising 0.7 per cent on Friday to a one-week high of $1.2054. It was last at $1.2044.
The risk-sensitive Australian dollar held near a one-week high at $0.7678.
In commodities, Brent crude and US crude climbed 52 cents each to $US59.86 and $US57.37 respectively.
US gold futures were up 0.2 per cent at $1,817 an ounce.