Asian Markets Closed on Upbeat, Tapering Tantrum Still Awaits

Asian markets closed higher on Monday with the MSCI Asia Pacific index closing on an upward tick by 0.32 index points.

The CSI300 index, KOSPI and Nikkei225 closed on a positive note by 0.46%, 1.42% and 0.09% respectively. However, the HSI index closed in the red inching down by 0.39%.

U.S. futures returned from the weekend with positive sentiment before the holiday season with gauges S&P500, Nasdaq100 and Dow Jones30 up by 0.36%, 0.37% and 0.39% respectively.

The dollar index is at higher edge against its six other baskets of currencies, inching up by 0.03%.

President Joe Biden is yet to announce name of the next Federal Reserve chair. Market strategists however believes whoever is chosen for the post already has a take on how to tackle surging inflation and might start tapering more aggressively.

The U.S. president also would address the nation about the health of the economy on Tuesday.

Europe once again turning to be the epic center of the pandemic and fresh new curbs has put the demand for oil from the region in question amid expected hinderance on economic recovery.

Traders in the crude oil market priced in another wave of COVID-19 in Europe as well as Japan weighing on release of crude oil reserves amid greater call by U.S. earlier. The two factors alternatively are likely to curb demand of oil and at the same time the world might end up with oversupply of oil.

The WTI and Brent recovered from loss earlier today trading at $76.09 and $79.02 respectively.