Asian actions under pressure after a peak in coronavirus cases

NEW YORK (Reuters) – Asian stocks were expected to be under pressure on Wednesday, as a surge in new coronavirus infections weighed on sentiment, though U.S. assurances that China’s trade deal was intact and Optimistic economic data provided some reasons for optimism.

FILE PHOTO: A man wearing a protective face mask, after the outbreak of coronavirus disease (COVID-19), walks in front of a stock listing table outside a brokerage in Tokyo, Japan, May 18, 2020 REUTERS / Kim Kyung-Hoon

Kyle Rodda, market analyst at IG Markets, said the late sales seen on Wall Street suggested a “soggy start” for Asian markets.

“We are looking forward to a positive start for Asian trade, but we will have outstanding concern about the virus itself and the development of a second wave,” said Kyle Rodda, market analyst at IG Markets. “The market is holding on to a recovery as much as it can.”

Australian S & P / ASX 200 futures were up 0.15% in early trading.

Japanese Nikkei 225 futures were down 0.02%. Hong Kong Hang Seng Index futures lost 0.01%.

On Wall Street, the Dow Jones Industrial Average finished 0.5% higher, the S&P 500 gained 0.43% and the Nasdaq Composite added 0.74%.

However, the top three indices trimmed gains from highs of more than 1% earlier in Tuesday’s session.

Coronavirus cases in the US USA They were up 25% in the week ending June 21 compared to the previous week, according to a Reuters analysis.

The states of EE. The US, including Texas and Arizona, set records in its outbreaks. The European Union is prepared to ban American travelers due to the increase in cases in the country, placing it in the same category as Brazil and Russia, the New York Times reported Tuesday.

“For now, markets are struggling with the implications given the high bar for re-imposing restrictions,” according to a research note from the National Bank of Australia.

Comments from United States Secretary of the Treasury Steven Mnuchin helped improve mood on Wall Street. He said that the next US stimulus bill. USA It will focus on getting people back to work quickly and would consider a further delay of the tax filing deadline.

The worldwide MSCI stock indicator gained 0.90%.

The euro rose to a week’s highs after positive economic data on Tuesday, and other high-risk currencies strengthened.

The dollar index fell 0.228%, with the euro rising 0.01% to $ 1.1307.

Oil prices fell after reaching their highest level since early March, due to expectations that US inventories. USA They will set a record for the third consecutive week.

US crude recently fell 0.89% to $ 40.01 a barrel and Brent held steady on the day.

Reporting by Jessica DiNapoli in New York; Editing by Sam Holmes

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