Asian shares hit 1-mo high


    SYDNEY- A gauge of Asian shares climbed to a one-month high on Thursday, as renewed hopes for more US stimulus helped restore investor confidence with markets now pricing in a Democratic victory during elections in November.

    MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent for its fourth straight session of gains to a level not seen since early September.

    Australia’s benchmark index jumped 1.1 percent to a one-month high helped by a larger-than-expected fiscal stimulus announced in federal budget on Tuesday night.

    New Zealand shares rallied on expectations of further monetary policy easing after the country’s central bank said it was “actively considering” negative interest rates and a funding-for-lending program.

    Japan’s Nikkei added 0.5 percent.

    Globally, risk assets have rallied since mid-March on a flood of central bank and government support for economies reeling from coronavirus-induced lockdowns world over. Expectations of more aggressive easing have further boosted sentiment.

    “It’s another good day for risk and equities have powered up,” said Pepperstone strategist Chris Weston in Melbourne.

    “Some talk of fiscal has been in play again, but this has become tiresome and the markets don’t need a reason to rally, they just don’t need to hear negative news. So, in the absence of any, we see equities flying and US Treasuries offered.”

    Weston expects more monetary policy stimulus from the US Federal Reserve before Christmas if the fiscal package comes in too small or too late.