Asian Equities Markets Follow Wall Street; Tech Outperforms

08/01/2021 The S&P 500 climbed to fresh highs, surpassing BofA’s 2021 year-end forecast of 3,800 to touch intraday high of 3,811 as investors welcomed the possibility of additional aid under the President-elect Joe Biden’s administration. Donald Trump committed to an orderly transition of power following a day of violence that saw crowds of his supporters storm the US Capitol. Asian stocks followed Wall Street higher as a surge in technology shares and hopes for more stimulus boosted sentiment. Oil hovers near 11-month highs, sustained by Saudi output cuts pledge – trading $54.58, up 0.40%.

The JSE closed at record highs as global markets welcomed Democrat-controlled U.S senate; the All-Share index rose 1.92% to 63,042.88 and the Top 40 1.98%, but the rand continues to weaken. Sasol advanced 11.95% to close R161.00, the second consecutive gain in a row – on Wednesday the stock bagged 9%. Banks gained 3.08%, financials 2.44%, resources 3.04%. The gold mining index fell 1.34%. The rand was the second-worst performing currency against the dollar among its emerging-market peers on the day, down 2.08% at R15.3739/$ while it traded at R18.8677/€ and R20.8514/£.

Top-40, on IG Markets, +440 points strong – we looking forward to good start at the opening of the local market.

NEWS:
• South Africa to Get Vaccines for Health Workers This Month
• Deepening Virus Crisis Turns Investors Off South Africa’s Rand
• South Africa’s Virus Rules Clog Borders
• South Africa Excess Deaths Reach Record as Covid Resurges
EQUITY PREVIEW:
• Aspen S. Africa Could Produce J&J Covid Shots by March: Reuters
• OIL TENDER: South Africa’s Sasol Seeks Crude for March Delivery
ECONOMIC DATA:
• 8am: Dec. SARB gross reserves, prior $53.76b; net reserves, prior$51.26b
• 11am: Dec. Absa Manufacturing PMI, prior 52.6
GOVERNMENT:
• 9am: President Cyril Ramaphosa speaks at the ANC’s anniversary celebration in Limpopo
• 9am: The Commission of Inquiry into Allegations of State Capture, chaired by Judge Raymond Zondo, resumes its hearings in Johannesburg

EU/UK/US
European Stoxx 600 index rose 0.51% as markets cheered Joe Biden’s confirmation by Congress as the 46th President of the US. Biden’s. UK’s FTSE 100 up 0.22% and Germany’s DAX 0.55% stronger.
Sentiment was further boosted by data showing demand for German-made goods rose 2.3% in November, higher than expected amid the spread of the pandemic.

U.S Stock futures steady, in positive territory, after hitting record highs. Dow futures +0.49%, S&P 500 futures +0.45% and the Nasdaq futures 0.28% firmer. The Dow closed up 0.69%, the S&P 500 added 1.48% and the Nasdaq was 2.56% firmer. Initial jobless claims slipped by 3,000 over the week ending on 2 January to reach 787,000. Figures to watch this afternoon: Change In Private Payrolls, Unemployment Rate.

ASIA
The MSCI’s broadest index of Asia-Pacific shares outside Japan up 1%, touching a record high. Japan’s Nikkei 2.0% firmer, hitting a three-decade peak as investors focus on hopes for an economic recovery later in the year.
Hong Kong’s Hang Seng rose 0.9% despite reports the Trump administration was considering banning U.S. entities from investing in a list of Chinese companies in the waning days of his presidency.