Asian stocks skyrocketed to begin the weekend after Independence Day, driving US equity futures and Treasures lower. Gold, silver and crude oil are down a bit.
Shanghai led the Asian markets 4.5%, followed by Hong Kong (+ 3.5%), Tokyo (+ 2%) and Taiwan (+ 1.5%)
An editorial in the state-controlled Securities Times may have boosted investors. He spoke about the importance of fostering a “healthy” bull market after the pandemic. The volume in Shanghai was 3x normal.
S&P futures are up 1.4% at 3,167 and are trading at their highest. Nasdaq and Dow futures are also up over 1%, while Russell 2000 SmallCap futures, which underperformed during the recovery, are + 2.1%.
“We believe there is a case for increasing the tactical allocation of Asian stocks in the context of global equity portfolios,” Nomura analysts wrote in a note today. “We see a number of catalysts that could drive ex-Japan Asia stocks’ superior performance over US stocks in the near term. Best COVID-19 trends and mobility data in economies / markets dominating the index Asia ex-Japan should translate into a faster economic recovery against the United States. “
Now read: Buffett throws in the towel waiting for a crash and buys »
Related: See Seeking Alpha’s Unique Global Investment Center »
