SINGAPORE — Asia-Pacific markets are set to bounce in Monday trade as 15 economies in the region signed a deal that formed the world’s largest trade alliance.
The deal, signed on Sunday, aims to gradually reduce tariffs across many areas, according to Reuters. The Regional Comprehensive Economic Partnership is now the world’s largest trade bloc, a deal that excludes the U.S. It marks the first time that East Asian powers China, Japan and South Korea are in a single trade agreement.
In Japan, futures pointed to a higher open, as compared to the Nikkei 225‘s last close. Japan is set to release its gross domestic product data in the morning.
Over in Australia, the S&P/ASX 200 jumped 1.22% in early trade.
Indian markets are closed due to a holiday.
In China, a set of economic data is due to be released, including industrial production and retail sales.
Over in the U.S., stock futures rose on Sunday night after the S&P 500 posted a record closing high on Friday and notched a one-week gain of 2.2%. The Dow rallied more than 4% last week and briefly hit an intraday record. The Nasdaq Composite lagged, however, sliding 0.6%.
Coronavirus cases stateside are surging again, with the U.S. reporting a record-high number of people hospitalized with Covid-19 on Friday. More states are rolling out fresh restrictions to slow the spread of the virus ahead of the holiday season.
“In the US virus cases and vaccine news remain front and centre together with any development on the likelihood of a fiscal stimulus package during the lame duck Congressional session,” Ray Attrill, head of foreign exchange strategy at the National Australia Bank wrote in a Monday note. “Vaccine news will also be watched closely with Moderna expected to report Phase 3 results and Pfizer/BioNTech potentially applying for an emergency use authorisation by the end of the week.”
Currencies
The U.S. dollar index, which tracks the greenback against a basket of its peers, was a toucher weaker at 92.724 after declining from levels above 92.9 late last week.
The Japanese yen traded at 104.67 per dollar, after strengthening from levels above 105 late last week. The Australian dollar was relatively unchanged, trading at 0.7271 against the dollar.
What’s on tap (all times in HK/SIN):
7:50 a.m.: Japan’s GDP
10:00 a.m.: China’s industrial production, retail sales, unemployment rate
11:00 a.m.: South Korea’s exports, imports
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Source: CNBC