Reuters - Asia share indexes remained near recent highs Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. politicians this month.
MSCI's broadest index of Asia-Pacific shares outside Japan was last up 0.3% at 717.2. Japan's Nikkei jumped 2% while Australia's main index advanced 0.8% led by shares of technology and mining companies. China's indexes were generally positive with the blue chip CSI300 index up 0.1%. E-mini futures for the S&P 500 added 0.4% in early Asian trading.
Hopes of a quicker economic revival and supply curbs by the Organization of the Petroleum Exporting Countries and its allies pushed oil to its highest in a year as it neared $60 a barrel.
World equity markets have been at or near records in recent trading days in hopes of faster economic revival led by successful vaccine rollouts and expectations of a large U.S. pandemic relief package.
On Friday, the Nasdaq and S&P 500 a high on stronger-than-expected corporate results in the fourth quarter and as companies were on track to post earnings growth for the first quarter instead of a decline.
The rallies came even as U.S. data painted a disappointing picture of the country's labor 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 $1.9 trillion COVID-19 relief package.
Biden and his Democratic allies in Congress forged ahead with their stimulus plan Friday as politicians approved a budget outline that will allow them to push it through in the coming weeks without Republican support.
U.S. Treasury Secretary Janet Yellen predicted the U.S. would hit full employment next year if Congress could pass its support package.
"That's a big call given full employment is 4.1%, 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," Melbourne-based chief strategist at foreign-exchange broker Pepperstone said Chris Weston said.
Expectations of a U.S. economic recovery have not boosted the dollar though, "because this shift in prospects is seen by the market as part of an international recovery," Westpac economists wrote in a note.
"Investors therefore favor risk taking, and so value the safety of the U.S. dollar less." The U.S. unit came off a four-month high against the yen to last be at 105.49. The euro was weaker after rising 0.7% Friday to a one-week high of $1.2054. It was last at $1.2034. The risk-sensitive Australia dollar eased from a one-week high to $0.7675.
In commodities, Brent crude and U.S. crude climbed 59 cents each to $59.93 and $0.57.44 respectively.
U.S. gold futures were up 0.1% at $1,815.4 an ounce.
