SYDNEY, NSW, Australia – Stocks in Asia were mixed to flat on Monday.
Confidence about the economy, particularly in the United States following President Biden’s $1.9 trillion stimulus package, continued to take center stage.
“Most market participants and policy-makers have been surprised by the speed of the recovery. On our estimates, the U.S. economy will reach pre-COVID-19 output levels by the current quarter,” Chetan Ahya, global head of economics at Morgan Stanley in New York, said in a note Monday, Reuters reported.
“Fiscal policy is doing much more than filling the output hole. Transfers to households have already exceeded the income lost in the recession. As reopening gathers pace, the labour market is poised for a sharp rebound.”
However, the mood in Asia was lukewarm.
The Australian stock market was flat with the All Ordinaries index adding just 4.50 points or 0.06 percent to 7,019.10.
The Nikkei 225 didn’t do much better. The key Japanese index edged up 49.14 points or 0.17 percent to close at 29,766.97.
The Hang Seng in Hong Kong, and China’s Shanghai Composite were both trading in the red late in the day.
The U.S. dollar was mixed Monday. The euro slipped to 1.1933 around the Sydney close Monday. The British pound dipped to 1.3907. The Japanese yen fell to 109.30. The Swiss franc was softer at 0.9306.
The Canadian dollar edged higher to 1.2484. The Australian dollar was well bid at 0.7728. The New Zealand dollar had a positive bias at 0.7190.