Asian markets wary of pandemic stimulus and concerns By Reuters

By Pete Schroeder

(Reuters) – Investors in Asia were expected to push stocks lower on Friday as concerns about US stimulus and mounting COVID-19 cases globally weighed on optimism.

Australians were down 0.54% in early trading, while the {{178 | Neither Japan was up 0.09%. Hong Kong futures were up 0.44%.

US Treasury Secretary Steven Mnuchin said negotiations on a new COVID-19 aid package were progressing “a lot”, although lawmakers from both parties said action could take longer than previously known. He hoped, as sticking points persist and Senate Majority Leader Mitch McConnell’s staff would make skeptical concessions.

Attention to the stimulus package increased after new data showed that the number of Americans filing for unemployment benefits for the first time rose to a nearly three-month high as the surge in COVID-19 cases weighed on. economic activity.

“US lawmakers are still trying to craft a coronavirus relief package,” wrote Joseph Capurso, a strategist at the Commonwealth Bank of Australia (OTC :). “The US economy needs fiscal relief because the lockdowns continue to spread. The lockdowns are shutting down businesses and preventing spending.”

On Wall Street, it fell 0.23%, lost 0.13% and added 0.54%.

In Britain, Prime Minister Boris Johnson said there is a “great chance” that the nation will secede from the European Union with a trade deal. The British pound fell on the more likely prospects of a no-deal Brexit.

The euro rose after the European Central Bank announced more stimulus measures to help lift the region out of a double dip recession.

In the United States, strong demand for $ 24 billion in 30-year Treasuries up for auction drove longer-term yields down and flattened the yield curve. The 10-year benchmark yield fell 3.3 basis points Thursday to 0.908%.

Oil prices rose nearly 3%, and Brent hit levels not seen since early March, hoping for a faster recovery thanks to COVID-19 vaccines. it was up 2.8% and US West Texas Intermediate (WTI) crude was up 2.8%.

Investor optimism helped push safe-haven gold lower, with a 0.4% drop and a 0.1% drop in the US.