Asian shares mostly higher, China markets fall back

The major indexes remain near their all-time highs set last month.The yield on the benchmark 10-year Treasury note rose to 1.11 per cent from 1.10 per cent late Tuesday.Investors continue to focus on Washington.

Asian shares were mostly higher on Wednesday as investors bet on eventual approval of a relatively big version of President Joe Biden's pandemic relief bill. The advance followed a broad rally on Wall Street, with solid contributions from Big Tech companies, banks and other sectors. Tokyo's Nikkei 225 rose 0.8 per cent to 28,589.22 and the Kospi in South Korea climbed 0.6 per cent to 3,116.38. Australia's S&P/ASX 200 surged 1.2 per cent to 6,844.90. The Hang Seng in Hong Kong declined 0.4 per cent to 29, 052.90 while the Shanghai Composite index bounced back from earlier losses, gaining 0.1 per cent to 3,536.89. With Democrats and Republicans remaining far apart on support for President Joe Biden's USD 1.9 trillion stimulus package, investors are betting that the administration will opt for a reconciliation process to get the legislation through Congress. "Positive earnings reports as well as hopes for Biden's fiscal rescue plan may have bolstered risk sentiment, with US Senate Democrats announcing they would push through with the stimulus bill even without bipartisan support,'' Prakash Sakpal and Nicholas Mapa of ING said in a report. Overnight, Big Tech companies and banks helped power a broad rally on Wall Street Tuesday. Shares in GameStop and other recent high-flying stocks hyped by online traders plunged. The stocks have been caught up in a speculative frenzy by traders in online forums and on social media who seek to inflict damage on Wall Street hedge funds that have bet these stocks would fall. GameStop plunged 60 per cent to USD 90 a share, and AMC Entertainment lost 41.2 per cent to USD 7.82 a share. Both companies have been in the spotlight for more than two weeks as the online community of investors pushed the stocks to astronomical levels. The price of silver, whose 9 per cent spike on Monday fueled speculation the precious metal was also being hyped by online traders, sank by more than 10 per cent. On Wednesday it was steady, gaining 56 cents to USD 26.97 an ounce. Treasury yields rose and the VIX, a measure of fear in the market, fell sharply, a sign volatility was easing. The S&P 500 index rose 1.4 per cent to 3,826.31. The Dow Jones Industrial Average gained 1.6 per cent, to 30,687.48. The tech-heavy Nasdaq composite climbed 1.6 per cent, to 13,612.78. The Russell 200 index of smaller companies also rose, by1.2 per cent to 2,151.44. The major indexes remain near their all-time highs set last month.

The yield on the benchmark 10-year Treasury note rose to 1.11 per cent from 1.10 per cent late Tuesday.

Investors continue to focus on Washington. President Biden invited 10 moderate Republicans to the White House to discuss his proposed USD 1.9 trillion economic aid plan. Republicans earlier countered with an offer of USD 600 billion, or less than one-third of Biden's proposed amount.

Investors bid up stocks heading into 2021 in expectation the rollout of coronavirus vaccines would allow global business and travel to return to normal. That optimism has been dented by infection spikes and disruptions in vaccine deliveries.

In other trading, benchmark US crude oil gained 27 cents to USD 55.03 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, picked up 25 cents to USD 57.71 per barrel. The US dollar rose to 105.01 Japanese yen from 104.98 yen late Tuesday. The euro strengthened to USD 1.2046 from USD 1.2042.