Shares in Asia rose early on Tuesday after Wall Street pulled off a weak start and closed with a modest lead thanks to a more solid performance from large technology companies.
Shares rose in Hong Kong, Sydney, and Singapore. Markets in Shanghai and Tokyo were closed for the holiday.
Wall Street got off to a weak start and ended with modest gains on Monday, thanks to another solid performance from large technology companies.
The improvement in oil prices was helping drive gains in Asia on Tuesday as the US benchmark added $ 1.50, or 6%, to $ 21.89 a barrel in electronic trading on the New York Mercantile Exchange. It climbed 61 cents to $ 20.39 on Monday.
International pricing standard Brent crude reached $ 1.30 to $ 28.50 per barrel.
Chris Weston of Pepperperstone said in a report, “The feeling on the floor is that energy is in a better place, and it’s not spectacular, but the supply/demand equation is starting to shift in a more positive direction.”
Due to the epidemic, oil prices had fallen according to demand amid trade-offs and travel restrictions. At one point, the price of American benchmark crude was so low that producers had to pay customers to take oil.
The brightness of the oil threatened to exceed the storage capacity. But the lifting of lockdowns and other restrictions to prevent new coronavirus outbreaks causes COVID-19, at least in some places, to have increased expectations for at least recovery in demand.
Weston said interest was turning into July futures for US futures.
“Brent crude is also a better time of this and the $ 30-level is a clear target,” he said.
In stock trading, Hong Kong’s Hang Seng rose 0.6% to 23,745.66, while in Australia the S&P / ASX 200 climbed 0.8% to 4,640.47. India’s Sensex gained 1.6% to close at 32,221.58 on Monday. Singapore’s benchmark jumped 0.9%, while Bangkok fell 1.3%.
It is another busy week for markets, with more than 150 companies in the S&P 500 reporting corporate earnings. On Friday, the government will also show how many jobs were lost during April.
S & P 500 ended 0.4% higher at 2,842.74, erasing an initial loss of 1.2%. The Dow Jones Industrial Average rose 0.1% to close at 23,749.76. The Nasdaq Composite, replete with technology shares, rose 1.2% to 8,710.71.
Microsoft climbed 2.4%. The airline’s shares after well-known investor Warren Buffett’s Berkshire Hathaway revealed that it sold all its bets to American Airlines Group, Delta Air Lines, Southwest Airlines, and United Airlines. Buffett is one of the most well-known dealers in the stock market, and investors around the world parse every clue given about investing. Over the weekend, he said what a mistake he made about airlines.
American Airlines fell 10.6% to the biggest loss in the S&P 500. United, Delta, and Southwest all lost 7.4% or more.
Potentially weighing in on the markets, Buffett said he hung up on his cash and didn’t make a big deal lately because he didn’t see any on lucrative terms.
In another trading, the yield on the 10-year Treasury note was slightly changed from 0.64%. It is still below 1.90% which was achieved at the beginning of the year. The drop in yields occurs when investors are lowering their expectations for the economy and inflation.
The dollar was down 106.62 yen from 106.75 yen on Monday. Euro $ 1.0908, remained unchanged.