Asian shares rose on Tuesday, the joy of a rally on Valley Street, reflecting some optimism when the outbreak of coronavirus was stronger than expected economic data.
Japan’s benchmark Nikkei 225 rose 1.8% to 22,380.02 in morning trading. South Korea’s Kospi dropped 1.5% to 2,123.85 points, while Australia’s S & P / ASX 200 rose 1.4% to 5,89.1.80. Hong Kong’s Hang Seng closed up 0.9% at 24,520.01. Shanghai Composite was trading at 2,974.94, up nearly 0.5%.
Analysts say that the question remains as to how the global economy will grow further as coronavirus outbreaks continue to grow. Japan’s economy is slowly reopening with social distinction restrictions.
“These will be important questions to answer, as the equity markets are currently in a delicate balance,” said Jingyi Pan, market strategist at IG, in a commentary.
Analysts said a survey of China factory managers released on Tuesday was better than expected, suggesting the global economy may be down after reaching the height of the shutdown in April-May.
Martin Rasmussen, an economist at Capital Economics, said the increase in production and new orders, particularly export orders, points to a rebound in foreign demand, although this is much weaker than overall new orders.
The Manufacturing Purchasing Managers Index for June was 50.9 below forecast, higher on a scale where 50 marks the cutoff between expansion and contraction. Non-manufacturing was 54.4 as compared to the expected 53.6.
On Wall Street, the market rebounded after a very healthy-to-expected report on the housing market and put investors in a buying mood. Technology, industrial and communications shares contribute to the market’s wide-ranging gains. European shares also closed higher. Treasury yields were found, and oil prices rose.
The surge in US stocks following the weekly losses created a fresh scare for markets around the world, which have been swinging back and forth in recent weeks as investors expect a relatively quick economic rebound as more business grows as concerns Are going. Confirmed new coronavirus cases force some businesses to close their doors again.
“This is just another day of general volatility, unfortunately with whom we are living now,” said Mark Litzerman, head of global portfolio management at the Wells Fargo Investment Institute. “This is part of a war between better economic figures coming through versus increased growth in cases.”
The S&P 500 rose 1.5% to 3,053.24. The Dow Jones Industrial Average rose 2.3% to 25,595.80, and the Nasdaq Composite rose 1.2% to 9,874.15.
Shares of smaller companies also jumped higher than the rest of the market, which often happens when investors feel more optimistic about the economy. The Russell 2000 index of small-cap shares rose 3.1% to 1,421.21. The index made up for all its losses from the previous week.
The US, The rise in infection of new coronaviruses, including the South and West, had dampened optimism that the S&P 500 was repatriated almost all the way before it reached the record in February.
Of concern is that deteriorated levels in recent times may improve the economy as recently states and other governments have easily completed lockdown orders, even with the Federal Reserve and other central banks, Has provided unprecedented amounts of assistance to the economy.
For example, Florida and Texas imposed new restrictions on bars to slow the spread of the virus, which helped drive the S&P 500 to a 2.9% loss last week. Other governments around the world are similarly pushing for efforts to reopen their economies, which sent the global economy into a sudden, severe recession.
Monday’s report on the housing market showed that the number of Americans signing contracts to buy homes rose a record 44.3% in May from a month earlier. This was more than double the 17% growth that economists were expecting, and the record-breaking dip of around 22% that came in April came as a whiplash reversal.
Lizerman said the encouraging housing reports are likely indicative of the demand for paint, noting that spring is the main season for home sales, and it was delayed until summer.
“It’s nice to see that people are shopping again,” he said. “The biggest thing is how quickly the consumer comes back and how they come back.”
The yield on the 10-year Treasury held steady at 0.63%.
Benchmark US crude fell 26 cents to $ 39.44. It rose $ 1.21 to $ 39.70 a barrel on Monday. Brent crude oil slipped 25 cents to $ 41.46 a barrel for August delivery.
The dollar rose from 107.57 yen to 107.74 Japanese yen. The euro costs $ 1.1248, up from $ 1.1238.