Japan PM Ishiba to announce resignation by August end – Mainichi
* All three major U.S. stock indexes at record highs
* Dollar index near 2 1/2-year low
* Pound slips, but Brexit optimism intact for some
By Hideyuki Sano
TOKYO, Dec 18 (Reuters) - Asian shares on Friday slipped
from the record they hit a day earlier, but the prospect of a
major U.S. coronavirus relief package left some investors still
in the mood to pick up stocks and other risk-exposed assets.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.3% from Thursday's record. Still, it's
on track for a seventh consecutive week of gains - the longest
such streak in about a year.
Japan's Nikkei .N225 dipped 0.2%, facing strong resistance
around 27,000.
U.S. S&P 500 futures ESc1 eased 0.15%, a day after their
underlying index .SPX gained 0.58% to close at an all-time
high of 3,722.48.
Global equities remained swathed in optimism that a deal
will be reached over a fresh U.S. economic stimulus package.
Congressional negotiators in Washington were scrambling on
Thursday to agree on details of a $900 billion COVID-19 aid
bill. Lawmakers from both major U.S. political parties said
failing to agree was not an option, and earlier Republican
Senate Majority Leader Mitch McConnell said talks could spill
into the weekend. Many investors saw the passing of new measures to support
the economy as imminent after data showed the number of
Americans filing first-time claims for jobless benefits
unexpectedly rose last week. "We are in an environment now where bad news is good news
because it means more stimulus," said Sharon Zollner, chief
economist at ANZ Research.
"That will have to change, but it is very difficult to know
when central banks will stop having their foot to the floor and
everyone has to reassess."
The bullish mood supported many currencies against the
safe-haven U.S. dollar, while other assets ranging from risky
bitcoin to safe-haven gold also rose.
The dollar index stood at 89.899 =USD , having slipped
below 90 for the first time in two and a half years.
The euro changed hands at $1.2255 EUR= , having hit a
two-and-a-half-year high of $1.2273 on Thursday.
The dollar stood at 103.29 yen, after having slipped to a
nine-month low of 102.88 the previous day.
As expected, the Bank of Japan extended a package of steps
aimed at easing corporate funding strains caused by the
coronavirus pandemic. The British pound slipped 0.25% to $1.3547 GBP=D4 , off the
two-and-a-half-year high it hit on Thursday, taking a minor hit
after British Prime Minister Boris Johnson's office said trade
talks with the European Union were in a "serious situation" and
that no agreement would be reached unless the bloc changed its
position substantially. But Irish deputy prime minister Leo Varadkar struck a
brighter tone, saying he remained optimistic the United Kingdom
and the European Union would secure a trade deal in the coming
days.
"Johnson has been making pessimistic comments all along, and
I don't think market perceptions have changed that much," said
Shinichiro Kadota, senior currency strategist at Barclays.
Bitcoin rose 1.8% to $23,223 BTC=BTSP , extending its
weekly gains to 21.3%, with a break of the $20,000 mark on
Wednesday triggering a fresh wave of buying binge. Spot gold XAU= eased slightly to $1,881.0 per ounce after
having hit a one-month high of $1,896.2 in previous session.
Likewise oil climbed to a nine-month high before easing
slightly in Asia on Friday.
Brent crude LCOc1 futures traded at $51.34 a barrel, down
0.3% on day but not far from Thursday's peak of $51.90, having
gained 2.7% so far this week.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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