Asian stocks were mostly higher on Tuesday, recovering from some early losses as regional markets tracked a late rally on Wall Street led by technology stocks.
Japan’s benchmark Nikkei 225 rose 0.8% to 22,621.84. Hong Kong’s Hang Seng index jumped 0.9% to 24,728.76 and South Korea’s Kospi rose 0.6% to 2,139.34. Australia’s S&P / ASX 200 gained 0.1% to close at 5,950.50, while Shanghai Composite rose 0.1% to 2,968.78.
Shares fell in Singapore and Jakarta but rose in Taiwan.
“It’s back to the regular order of business, which is trying to figure out why the stock is so high!” Stephen Ines of AxiCorp said in a comment. “You can add the revival of COVID-19 to the laundry list of things on the market. Don’t care about it, so it seems.”
On Wall Street, the S&P 500 rose 0.6% to 3,117.86, initially a 0.6% weakness in foreign markets after a global level of coronovirus infection exceeded 9 million. Investors are weighing the risks that an increased recovery of coronovirus can expect from an economic recovery. This causes merchants to bid on shares of technology companies that offer online services, a thriving drain of commerce through the outbreak.
Jingi Pan, a market strategist with Singapore’s IG, said, “In an environment where the WHO recently announced a record increase in global Kovid-19 cases, sentimentality can still change rapidly with the switch.” a report.
Overnight, the head of the World Health Organization, Tedros Adholm Ghebayeus, warned that the worldwide “coronovirus epidemic” is still intensifying “. He said the most recent 1 million cases of the virus had occurred in the last eight days.
While the Asian market was initially less open, US trade dealings with China were difficult due to comments made by White House trade adviser Peter Navarro.
Navarro, however, said his comments were taken out of context, and President Donald Trump tweeted that the settlement with China, the basis for the trauma in the tariff war over technology and other problems, still continues. Trump tweeted: “The China Trade Deal remains intact. Hopefully they will live up to the terms of the agreement! ”
Investors are in favor of retailers and other companies now ready to do well that more businesses have been pushed forward to reopen. But traders continue to place their bets by traditionally holding low-risk assets, such as government bonds and gold, which were also roses. Bond yields were mixed.
The Dow Jones Industrial Average rose 0.6% to 26,024.96, having previously slipped 203 points. The Nasdaq Composite, which is heavy with technology shares, climbed 1.1% to 10,056.47, extending its winning streak to the seventh day.
Small company stocks, which lagged behind the broader market rebound beginning in April, also posted solid gains at 1,433.53, adding 1.1% to the Russell 2000 index.
Although recent US economic data has improved as businesses have reopened, it may take years for the economy to fully recover. In contrast, it took a few months for the stock market to rally back to within 9% of its record.
David Kelly, chief global strategist at JPMorgan Funds, sees a gap between recent market gains and the performance of economic data. He said markets are seen to be wandering back and forth from the basics, which is making them “more distrustful of markets as an economic barometer”.
New data on US home sales has shown that an outbreak of the virus is disrupting the US housing market. According to the National Association of Realtors, sales of previously occupied homes were up 9.7% in May. The May slide pushed sales down to a seasonally adjusted annual rate of 3.91 million, the slowest since 2010. Nevertheless, the average home price rose 2.3% from a year earlier, a sign that demand may pick up in the coming months.
Investors will get comprehensive information on the state of the economy later this week, when the government releases data on consumer spending, weekly unemployment assistance applications and durable goods orders. On Tuesday, the Commerce Department presents new home sales figures for May.
The benchmark US crude price in electronic trading at the New York Mercantile Exchange was $ 40.46 a barrel. It rose 71 cents on Monday. Brent crude rose 1 percent to $ 43.08 a barrel internationally.
The dollar rose to 107.17 Japanese yen from 106.90 yen late Monday. The euro was trading at $ 1.1267 to $ 1.1267