Asian shares are trading higher fueled by news that the coronavirus vaccine might be ready by the end of the year and the news that the EU meeting finally strikes a deal on the 750 billion relief package. Promising results of the initial clinical trials for a COVID-19 vaccine from AstraZeneca and Oxford University boosted confidence that we are close to the end of the vaccine race that will also signal the end of uncertainty around the coronavirus crisis.
EU Strike A Historical Deal On Relief Plan
EU member countries reached a deal after marathon negotiations on the 750 reconstruction plan to fight the coronavirus impact. The agreement is for 390 billion of grants and 360 billion on loans. The basic tool, the Recovery and Resilience Facility is up to 672.5 billion, but the grants lowered by 110 billion since the initial proposal after pressures from Holland, Austria, Sweden and Denmark.
Wall Street ended higher with a strong rally in technologies hopes on optimism of a new stimulus plan from Trump’s administration.
In Asia, the Shanghai Composite index is 0.20% at 3,220. The Singapore Straits Times index is 0.45% higher at 2,636. Hang Seng is 1.74% lower at 25,050. ASX 200 also trade higher boosted by financial and technology stocks, as of writing is 1.12 higher at 6,068.
Nikkei 225 Returns Above 22,880
Nikkei 225 managed to rebound today after three straight days of loses boosted by the technology and healthcare sector on hopes of the coronavirus vaccine. On the economic data front, the Japan National Consumer Price Index came in at 0.1%, above the consensus estimates of 0% in June. The CPI excluding Food and Energy registered at 0.4% above the forecasts of 0.3% in June.
On the technical analysis side, the immediate resistance for the Nikkei 225 index stands at 22,925.58 the daily high. The next hurdle for the Nikkei stands at 22,981 the high from July 15. If the index continues higher than 22,981, the next supply zone is at 23,190 the top from June 10.
On the other hand, first support for Nikkei 225 stands at 22,780 the session low. If the Nikkei 225 index breaks below, then the next support will be met at 22,576 the low from yesterday’s trading session. If the selling pressure persists, the next support zone stands at 22,056 the 50-day moving average.