[ad_1]
SYDNEY: Asian stocks followed Wall Street higher on Monday as investors expected more countries to restart their economies, even as some reported an unwanted rebound in new coronavirus cases.
South Korea warned of a second wave of the new coronavirus as infections recovered to a maximum of a month, while new infections accelerated in Germany.
Still, investors seemed determined to remain optimistic, and MSCI’s broader Asia-Pacific index of stocks outside Japan rose 0.1%.
Japan’s Nikkei added 0.7% and South Korea’s shares 0.3%. E-Mini futures for the S&P 500 opened smoothly but rebounded as the morning progressed and rose 0.3%.
Wall Street had met on Friday after the April payroll report proved terrible, but not as terrible as analysts’ worst fears.
“Simply getting the worst job report in history is helpful for risky assets,” said Alan Ruskin, G10 FX director at Deutsche Bank.
“Since the end of March there has been an extraordinary divergence between the real economy and financial risk, with the help of the latter thanks to unprecedented political adjustments,” he added.
“Markets know that the data from the real economy is terrible. We are less sure how long policy-aided markets can challenge the real economy, if growth improvement is slow.”
The bond market certainly seems to think any recovery will be slow with two-year yields hitting record lows at 0.105% and Fed fund futures turning negative for the first time. [US/]
The price recovery occurred even when the US Treasury. USA He plans to borrow trillions of dollars in the coming months to cover a huge budget deficit.
Federal Reserve Chairman Jerome Powell will deliver a key speech on Wednesday and analysts suspect he will rule out taking negative rates, at least for now.
The decline in US yields. USA It could have been a burden on the dollar, but with rates everywhere near or below zero, the major currencies have stagnated in tight ranges.
The dollar was a little firmer in the yen at 106.94 on Monday, but within the range of 105.97 to 109.37 that has lasted since the end of March. The euro was a softer fraction at $ 1.0830 but above last week’s low at $ 1.0765.
Against a basket of coins, the dollar was idle at 99,837, wedged between support at 98,769 and resistance at around 100.40.
In the commodity markets, gold rose 0.3% to $ 1,706 an ounce. [GOL/]
Oil prices opened about 1% lower as a persistent excess weighed on prices and the coronavirus pandemic eroded global oil demand, even as some governments began easing blockages. [O/R]
Brent crude futures lost 27 cents at $ 30.70 a barrel, while US crude fell 39 cents to $ 24.35. – Reuters
[ad_2]
