Asian stocks rose on Wednesday after Wall Street gained gains on the third day and are driven by optimism over economies re-emerging from a shutdown to curb the coronavirus epidemic.
Japan’s benchmark Nikkei 225 rose 1.1% to 22,581.19 in morning trading. Australia’s S&P / ASX 200 rose 0.8% to 5,882.60. South Korea’s Kospi rose 2.6% to 2,141.28.
Australia’s S&P / ASX 200 rose 1% to 5,894.00. Hong Kong’s Hang Seng was up 1.1% at 24,258.49, while Shanghai Composite rose 0.4% to 2,931.90.
“The theme of the reopening of optimism is in markets going into the midweek to inspire Asia’s markets despite a series of current concerns,” said Jingyi Pan, market strategist for IG in Singapore.
Amid such concerns, the world’s two major economies, China and the U.S., And whether widespread protests in the US will establish another increase in COVID-19 cases.
On Wall Street, the S&P 500 closed 0.8% higher, at 3,080.82, after missing most of the morning. Technology, industrial and healthcare sectors have a major piece of profit in the shares. Before the meeting of the major oil producers, the rise in the price of crude oil pushed the energy stocks out of the rest of the market. Bond yields climbed, another sign of pessimism among investors.
The pace of Wall Street has not yet been derailed by a wave of daily unrest in the US that began last week in Minneapolis to protest police brutality. Violence and catastrophe have been raging in cities across the country for seven consecutive days, threatening to spark unrest to send troops from the White House to take up the threat.
The us “The market action has a lot to do with people’s confidence about economic restructuring,” said Bank Wealth Management’s national investment strategist, Tom Hanlin. “This is happening despite what we are seeing socially right now across the country.”
The Dow Jones Industrial Average rose 1.1% to 25,742.65. The Nasdaq Composite, which is heavily weighted with technology companies, added 0.6% to 9,608.37 after dipping as 0.8%.
Shares of the small company gained the most. The Russell 2000 index climbed 0.9% to 1,418.21.
NASA astronauts launched into space by SpaceX on Saturday stopped trading on the Nasdaq, ringing the opening bell from the International Space Station.
Stocks have recovered most of their losses following an initial economic decline from coronavirus after knocking the market to a 34% skid in February and March. The S&P 500 is now down 9% from its all-time high in February.
Investors are hoping that the worst of the recession has already passed, or will happen soon, as governments around the country and around the world slowly lift restrictions that left widespread swathes of the US economy in early March.
Although more countries and regions are being reopened, economic activity is expected to be subdued as distant social regulations complicate plans to get back into the business. Meanwhile, investors continue to monitor any signs that COVID-19 cases are resurfacing to reopen the economy.
In Japan, Tokyo, on Tuesday, registered 34 new confirmed cases, with the city’s leading officials declaring a largely symbolic “vigilant” for greater social distance. The Rainbow Bridge in Tokyo was lit in red to remind residents. Before Tuesday, daily new infections had recently dropped below 20.
Bond yields were mostly high. The yield on the 10-year Treasury fell from 0.71% to 0.71% on Tuesday late night.
The benchmark US crude added 76 cents to $ 37.57 a barrel. It rose from $ 1.37 to $ 36.81 a barrel on Tuesday. Brent crude oil for August delivery rose 54 cents to $ 40.11 a barrel.
This week’s balance will provide new data on the labor market, which has led to a huge increase in Americans who have lost their jobs as millions of people have gone out of work due to the closure of coronaviruses.
Payroll processor ADP on Wednesday released its May survey of hiring by private US companies. The weekly tally for unemployment assistance arrives on Thursday. And on Friday, the government reports its labor market figures. Analysts at FactSet expect the report to report a 9 million job shortfall last month and raise the national unemployment rate to around 20%.
Investors will be eyeing several companies ready to go public this week. Music company Warner Music Group is scheduled to hold its IPO on Wednesday, while business information services company ZoomInfo Technologies is scheduled to go public on Thursday.
The US dollar slipped from 108.67 yen to 108.62 Japanese yen late on Tuesday. The euro climbed from $ 1.1171 to $ 1.1200.