After falling sharply last week due to concerns about the Delta variant, the Asian stock market is catching its breath. On Wall Street, the week opened slightly lower.
While the stock markets are waiting for the second quarter results in the US and the latest inflation data, the MSCI index, which includes stocks from all countries, is up on Monday, with an increase of 0.2% after having declined last week.
The rise was driven by the return of Asian stocks to the green. Asia-Pacific stocks outside Japan climbed 0.7 percent, while Japan’s Nikkei (.N225) rebounded 2.2 percent. Chinese blue chips (.CSI300), meanwhile, rose 1.1%
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However, these figures are not enough to reassure investors, while the ministries of the economy of the 20 richest countries in the world are warning about the possible resurgence of cases against the Delta variant.
“There is a problem of coordination at the global level, with countries vaccinating at different rates. The question is how much are you vaccinating and vaccinations are quite low in much of Asia,” said Colin Asher, senior economist at Mizuho, interviewed by Reuters.
U.S. inflation data due on Tuesday will be particularly watched after the recent drop in U.S. 10-year Treasury yields by 15 basis points. Yields are not far from a 4 1/2-month low of 1.35%, under pressure from a fourth wave.
U.S. Nasdaq, Dow Jones and S&P 500 futures were a bit lower, while the pan-European stock index lost 0.2 percent.
The U.S. dollar edged up against a basket of currencies to 92.17, while the yen, which hit a three-week high against the dollar last week, was down 0.14 percent. The euro strengthened to $1.188, after hitting last week’s low of $1.1780.
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