BEIJING (Reuters) – Asian equity markets followed Wall Street higher on Friday after US regulators removed some limits on banks’ ability to make investments.
The Nikkei 225 NIK,
in Tokyo it increased by 0.9%, while Kospi 180721 in Seoul,
gained 1%. Hang Seng HSI from Hong Kong,
lost 0.4%. The S & P / ASX 200 XJO,
in Sydney added 0.5%, and New Zealand NZ50GR,
Singapore ITS,
and Jakarta JAKIDX,
Also advanced.
Chinese markets were closed for holidays.
Wall Street closed higher after the Federal Reserve and other regulators announced they will loosen rules that limit banks’ ability to invest in hedge funds and some other areas. The change could help shore up small banks’ profits after central banks cut interest rates to near zero in response to the coronavirus pandemic.
The gains were relatively small because Washington did not deliver more than expected, Stephen Innes of AxiCorp said in a report. He said the markets gave a “mild reaction” similar to the Bank of England’s earlier decision to ease the policy.
“Investors have a hard time seeing the new marginal or incremental support,” Innes said. Investors may need more prominent catalysts. Ideally a vaccine. “
Analysts say investors are anticipating a possible rebound in the deepest global recession since the 1930s and are trying to buy companies that will prosper after the pandemic ends. But they caution that the market surge may be too fast and too early to be sustained by an uncertain economic outlook.
Asian economies are ending their worst quarter since the 2008 financial crisis.
The US economy contracted 5% in the first quarter of the year, the Commerce Department reported Thursday. Forecasters expect a worse decline during the quarter ending next week.
Investors in the United States have been encouraged by official measures to lift anti-virus measures and allow companies to reopen. But some states have reinstated curbs after the resurgence of new infections.
Hospitalizations and cases have reached new highs in California, Florida and Texas, which is suspending their aggressive reopening. The daily number of confirmed cases in the country closed at the peak reached in late April.
Asian governments are due to report June trade, factory output and other indicators next week.
“With the second wave of COVID-19 spreading in some countries and the first wave outbreaks not yet over in others, the economic recession has a long way to go,” ING’s Prakash Sakpal said in a report.
On Wall Street, the S&P 500 index SPX,
It increased 1.1% to 3,083.76 after falling 0.9% at one point. The benchmark index is on track for its best quarter since 1998.
The Dow Jones Industrial Average DJIA,
increased 1.2% to 25,745.60. The Nasdaq COMP,
, which hit a record high earlier this week, gained 1.1% to 10,017.
Tech and healthcare shares also helped lift the market, outweighing losses in public services. Bond yields fell, a sign of caution.
After the close of trading, the Fed ordered the 34 largest banks in the US to suspend their share buybacks and limit dividend payments until September 30 so they can strengthen their defenses in the event of a damaging recession. .
The Fed said its annual “stress tests” showed that banks would collectively lose about $ 700 billion in the worst-case scenario.
In the energy markets, the US benchmark crude CLQ20,
It rose 43 cents to $ 39.15 a barrel. It closed Thursday at $ 38.72 a barrel. Brent BRNQ20 Crude,
, the standard price for international oils, added 41 cents to $ 41.53 a barrel in London. It closed at $ 41.05 the previous session.
The USDJPY dollar,
It decreased to 107.14 yen from 107.23 yen on Thursday.
.
