Asia stocks rise following Biden’s White House transition

Asian market rose on Tuesday built on optimism that Covid-19 vaccine would be available soon. (AP Photo/ Vincent Yu)

Most of Asian markets rose on Tuesday as Joe Biden will begin his transition into the White House on the hope that Covid-19 vaccines could soon be distributed worldwide.

Meanwhile, the atmosphere on trading floors continues to drop by the surge of infections and mounting deaths that have forced governments to impose reluctant measures that may have huge impact for the economy.

Donald Trump said on Monday that agencies that work with incoming administrations can start work to assist Biden’s panel.

The news came as president-elect Joe Biden announced former Federal Reserve head Janet Yellen as Treasury Secretary, a choice well greeted by traders.

The combination of Yellen and current Federal Reserve Chief Jerome Powell “is an exceptionally dovish combination”,

“Both have the same views on jobs; they have witnessed policy mistakes like taper tantrum and gnarly market impacts of early rate hikes. There will be a mutual agreement for lower for a very, very long time. And that cohesion will be good for the market in general.”

Tokyo jumped to more than 2% as traders returned from a long weekend, as Sydney rose a little bit more than 1%.

Singapore, Seoul, Mumbai, Wellington and Jakarta all shared their healthy gains whilst Shanghai, Taipei and Manila fell, as Bangkok remains still.

“Sadly, the next few months are likely to see the worst of the pandemic in cases and fatalities,” says David Kelly of JP Morgan Asset Management.

“Despite this, the distribution of the vaccine in 2021 will almost certainly trigger a very strong economic revival.”

Source: Thailand Herald