S&P 500 Futures cheer US stimulus hopes near record high above 3,700

S&P 500 Futures rise to 3,711.12, up 0.25% intraday amid the initial hour of Tokyo open on Wednesday. The risk barometer tracks the Wall Street benchmark that refreshed record high on Tuesday’s closing as the US house members reach near to the much-awaited coronavirus (COVID-19) aid package.

Read: Wall Street Close: Bulls encouraged by covid vaccine progress

Having earlier heard from House Speaker Nancy Pelosi that the stimulus negotiations have made good progress, US Treasury Secretary Steve Mnuchin said to propose a bigger amount than the previously highlighted $908 billion for the aid package. Recent chatters in the market suggest that the House Minority Leader Kevin McCarthy and Senate Majority Leader Mitch McConnell back $600 billion as a package deal, per Axios. Additionally, US policymaker McCarthy is also said to be supporting Treasury Secretary Mnuchin in his stimulus approach.

Elsewhere, the UK’s start of vaccination and the likely immediate legal approvals of the key vaccine candidates by other developed economies also favor the risk-on mood.

Though, record-high virus infections and the death toll in the US join no clarity over the Brexit deal to weigh on the trading sentiment. Also challenging the mood could be the fresh Sino-American tussles over the US sanctions on Chinese diplomats and the arrest of the Hong Kong opposition party members by police.

Against this backdrop, Japan’s Nikkei 225 gains over 1.0% while the rest in Asia-Pacific also rise by press time. Further, the US 10-year Treasury yields are up 2.3 basis points (bps) to 0.936% by the time of writing.

While the risk catalysts are likely to keep the driver’s seat, November’s inflation data from China may offer immediate direction to markets.