Asian shares mostly higher as Biden inauguration approaches

Shares advanced in Asia on Tuesday as coming changing of guard in U.S. raised hopes for more support for ecomy and more aggressive measures to fight pandemic.

Benchmarks were higher in Tokyo, Seoul and Hong Kong but slipped in Shanghai. World markets were subdued on Monday, with U.S. exchanges closed for a holiday.

President-elect Joe Biden’s minee for treasury secretary, former Federal Reserve chair Janet Yellen is calling on Congress to do more to fight recession to avoid an even worse downturn.

In testimony prepared for her confirmation hearing Tuesday before Senate Finance Committee, Yellen said more aid is needed to get coronavirus vaccines distributed — key to ending outbreaks — to reopen schools and help families struggling with job losses stay fed and housed.

U.S. markets were closed Monday for a national holiday. Analysts say attention is focused on Wednesday’s inauguration and beginning of a new administration as President Donald Trump departs.

“ positive shift in investor optimism ahead of inauguration day is a clear signal market is leaning towards an early stamp of approval on Biden administration policy nda," Stephen Innes of Axi said in a commentary.

Hong Kong's Hang Seng led advance, gaining 3.2% to 29,784.44 and Nikkei 225 in Tokyo gained 1.5% to 28,673.84. South Korea's Kospi jumped 2.7% to 3,095.96. In Australia, S&P/ASX 500 rose 1.2% to 6,740.60. Shanghai Composite index was flat at 3,596.10.

Last week, Biden proposed a $1.9 trillion relief plan to provide more aid to American families, businesses and local communities and more support for vaccine production and distribution.

While Democrats have endorsed effort, many Republican lawmakers have expressed concerns about price tag given soaring federal budget deficits.

Yellen said that she and Biden were aware of country’s rising debt burden, but that ultra-low interest rates make spending more w a smart choice.

Senate Finance Committee hearing with Yellen on Tuesday is one of several that Senate will be holding as incoming Biden administration tries to get its top Cabinet officials in office quickly.

Adding to sense of urgency, coronavirus outbreaks have been gaining even as states work to get COVID-19 vaccines into arms of as many people as possible.

Coronavirus deaths are rising in nearly two-thirds of American states as a winter surge pushes overall toll toward 400,000 amid warnings that a new, highly contagious variant is taking hold.

Stock markets got off to a slow start for week on Monday despite news that Chinese ecomy grew 2.3% in 2020 after a sharp contraction early in year. That followed a retreat on Wall Street last week.

Treasury yields have been climbing on expectations U.S. government will borrow much more to pay for additional stimulus proposed by President-elect Joe Biden, in addition to improved ecomic growth and higher inflation. yield on 10-year Treasury zoomed above 1% last week for first time since last spring and briefly topped 1.18% this week. yield on 10-year Treasury was 1.11% on Tuesday.

In or trading, benchmark U.S crude oil lost 1 cent to $52.41 per barrel in electronic trading on New York Mercantile Exchange. It gave up $1.20 to $52.42 per barrel on Monday.

Brent crude, international standard, picked up 32 cents to $55.07 per barrel.

dollar rose to 104.02 Japanese yen from 103.69 yen late Monday. euro strengned to $1.2095 from $1.2078.

Im credits: AP