Asian Markets Close Mostly Higher As U.S. Stimulus News, Brexit Trade Deal Lift Sentiment

Asian stock markets ended mostly higher on Tuesday as news about U.S. President Donald Trump signing a $2.3 trillion government spending bill and a post-Brexit trade agreement between the European Union and the U.K. lifted sentiment.

Investors also reacted to news that the U.S. House of Representatives approved Trump's proposal to increase stimulus checks to $2,000 from $600. The proposal will now go to the Republican-controlled Senate.

Japanese stocks hit their highest level in about 30 years, led by gains scored by major exporters thanks to a weaker yen. The benchmark Nikkei 225 Index soared 714.12 points or 2.7 percent to 27,568.15.

Shares of transportation, paper & pulp, real estate, electric machinery, shipbuilding and precision instruments companies were in demand.

Among heavyweight stocks, Softbank, Fast Retailing, Tokyo Electron, Sony, Canon and Panasonic posted impressive gains.

Sumitomo Dainippon Pharma ended with a hefty gain after Myovant Sciences and Pfizer said on Monday that they have formed a collaboration to develop and commercialize relugolix in oncology and women's health in the U.S. and Canada. Sumitomo Dainippon Pharma's wholly-owned subsidiary is the majority shareholder of Myovant Sciences.

In the Australian markets, where trading resumed after a long weekend, information technology stocks turned in a fine performance. The telecom, industrial, banking and consumer discretionary sectors also had a good session.

The benchmark S&P/ASX 200 Index ended higher by 35.50 points or 0.5 percent at 6,700.30 after rising to a high of 6,725.10. The broader All Ordinaries Index ended up by 44.60 points or 0.6 percent at 6,962.10.

Omni Bridgeway Limited shares rallied 6.2 percent, topping the list of gainers in the S&P/ASX 200 Index. A2 Milk Company advanced nearly 6 percent, while Afterpay climbed 5.3 percent, WebJet gained 4.5 percent and Flight Centre Travel Group gained 4.3 percent.

Among the prominent losers, Beach Energy slid 4.3 percent and IDP Education ended lower by 2.4 percent. Reliance Worldwide Corporation, Ausnet Services and AUB Group shed 1.4 to 1.7 percent.

Among banking stocks, Commonwealth Bank, ANZ Banking, Westpac and National Australia Bank moved higher. Fortescue Metals was among the prominent gainers in the mining space, while Woodside Petroleum moved up sharply to figure among the top gainers in the energy section.

Meanwhile, Chinese stocks moved to the downside. The Shanghai Composite Index ended down 18.25 points or 0.5 percent at 3,379.04. Hong Kong's Hang Seng Index moved up by a little over 1%.

In economic news, a report from the Bank of Korea said its Composite Consumer Sentiment Index came in with a score of 89.8, down sharply from 97.9 in November.

Consumer sentiment regarding current living standards was three points lower than in November at 86, and the reading concerning the future outlook for living standards was five points lower at 89.

New Zealand's NZX 50 Index gained 1.6 percent and South Korea's KOSPI climbed 0.4 percent. Elsewhere in the region, Indonesia moved up, while Taiwan closed little changed.

On Wall Street, stocks closed higher on Monday in reaction to news that President Donald Trump has finally signed a $2.3 trillion government spending bill that includes approximately $900 billion in coronavirus relief funds.

Trump had previously resisted signing the legislation, calling for $600 in direct payments to individuals to be increased to $2,000. Trading activity remained subdued, however, with many traders still away from their desks ahead of the New Year's Day holiday on Friday.

The Dow climbed 204.10 points or 0.7 percent to 30,403.97, the Nasdaq rose 94.69 points or 0.7 percent to 12,899.42 and the S&P 500 advanced 32.30 points or 0.9 percent to 3,735.36.

Market Analysis