Asia stocks set to gain after recovery hopes push Wall Street higher
09 June, 2020
Asian stocks were set to climb on Tuesday as confidence within an monetary recovery pushed the Nasdaq benchmark to an archive high, although doubts about crude supply cuts were likely to keep oil prices under great pressure.
Markets have already been encouraged by a May US jobs report the other day that showed a surprise fall in the unemployment rate, bolstering views that the worst of the downturn has ended and that the economy was moving towards an instant rebound.
“The jobs report blew away expectations and the numbers were unparalleled ever sold,” said Thomas Hayes, chairman of Great Hill Capital in NY. “We’re beginning to see on the market the magnitude and speed folks government intervention and the market is currently looking through the short-term negative numbers from GDP towards a much stronger recovery.”
Australian S&P/ASX 200 futures were up 0.67 percent and Hong Kong’s Hang Seng index futures rose 0.52 percent. However, Japan’s Nikkei 225 futures were down 0.04 percent.
The Nasdaq hit an archive high close on Monday, becoming the to begin Wall Street’s three main indexes to bounce back from the marketplace crash due to the pandemic.
Financial, automotive and retail-oriented and energy shares - the stocks most beaten-down because the pandemic slammed markets - have been leading equity indices higher recently.
US stocks also put into gains late in the trading session following the Federal Reserve eased the conditions of its “Main Street” lending program to inspire more businesses and banks to participate.
On Wall Street, the Dow Jones Industrial Average rose 1.7 percent, the S&P 500 gained 1.20 percent and the Nasdaq Composite added 1.13 percent.
Oil prices fell after Saudi energy minister Prince Abdulaziz bin Salman said on Monday that the kingdom and Gulf allies Kuwait and the United Arab Emirates wouldn't normally cut an extra 1.18 million bpd in July because they are doing this month.
THE BUSINESS of Petroleum Exporting Countries and others had on Saturday decided to sustain cuts equal to about 10 percent of global oil supply.
US benchmark crude fell US$1.36 a barrel to settle at $38.19 a barrel, while Brent settled down $1.50 at $40.80 a barrel.
In currency market, the dollar slid and commodity currencies gained as risk appetite ramped up. THE BRAND NEW Zealand dollar rose to its highest in practically four months following the government said it had stopped local transmission of the coronavirus.
The dollar index fell 0.053 percent, with the euro up 0.02 percent to $1.1294.
JAPAN yen weakened 0.01 percent versus the greenback at 108.44 per dollar, while sterling was last trading at $1.2733, up 0.09 percent on your day.
Yields on top-rated German government bonds dipped but remained near more than two-month highs hit the other day on the trunk of improving sentiment in world markets.
US Treasury yields also fell, with the 10-year make a note of 2.8 basis points at 0.8785 percent. Gold rose after a steep decline, boosted by hopes of a dovish monetary policy outlook from the Federal Reserve after the US central bank ends a two-day meeting on Wednesday.
Investors are actually seeking clarity from Fed Chair Jerome Powell on monetary and fiscal policies.
US gold futures settled up 1.3 percent at $1,705.1 an ounce.
Source: www.thejakartapost.com
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