Asian stocks rose along with U.S. and European futures as investors weighed expectations for ongoing policy support against increasing global coronavirus cases. The dollar and Treasuries dipped.
Shares in Shanghai surged more than 4% on strong volume, amid positive commentary on the market from state media. Benchmarks in Tokyo, Hong Kong and Seoul were also higher. U.S. equity futures climbed with markets due to reopen after a holiday. Australian shares underperformed as authorities ramped up efforts to control outbreaks in Melbourne. The WHO reported a one-day high in global infections over the weekend with cases crossing 11.3 million. Oil retreated.
Investors are weighing a global equity market that remains about 40% above its March lows amid an economic recovery under threat from the continuing spread of the virus. Goldman Sachs Group Inc. now expects a wider contraction in the U.S. economy this year, saying third-quarter growth won’t be as strong as predicted.
“The willingness of investors to look through the current disruption to an anticipated recovery this quarter is imperiled by still rising virus infection rates,” said Michael McCarthy, a markets strategist at CMC Markets Plc in Sydney.
Here are some key events coming up:
- Monetary policy decisions are due Tuesday in Australia and Malaysia.
- The EIA crude oil inventory report comes Wednesday.
- All eyes will be on the U.S. weekly jobless claims report on Thursday.
- Singapore holds its general election on Friday.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.9% as of 12:45 p.m. in Tokyo.
- Japan’s Topix index advanced 1.3%.
- Hong Kong’s Hang Seng climbed 3%.
- Shanghai Composite rose 4.2%.
- South Korea’s Kospi added 1.4%.
- Australia’s S&P/ASX 200 Index added 0.2%.
- Euro Stoxx 50 futures rose 2.3%.
Currencies
- The yen slipped 0.2% to 107.68 per dollar.
- The offshore yuan climbed 0.2% to 7.0557 per dollar.
- The euro bought $1.1282, up 0.2%.
Bonds
- The yield on 10-year Treasuries ticked up two basis points to 0.69%.
- Australian 10-year yields were at 0.94%, up four basis points.
Commodities
- West Texas Intermediate crude oil fell 0.7% to $40.38 a barrel.
- Gold was flat at $1,772.74 an ounce.
Source: Bloomberg