Asian stocks should go up as Wall Street jumps into foreclosure, calming hopes

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NEW YORK (Reuters) – Asian stocks are expected to gain in value on Tuesday after a strong session on Wall Street, as easing of locking restrictions by some US countries and states has strengthened sentiment despite further declines in oil prices.

FILE PHOTO: People wearing protective masks, following a coronavirus outbreak, are reflected on a screen showing the Nikkei index, outside a brokerage in Tokyo, Japan on 28 February 2020. REUTERS / Athit Perawongmetha

While some investors believe the worst may soon be over for the global economy, the Commonwealth Bank of Australia said there are still many reasons to be cautious.

“We are less optimistic and expect a slower recovery in the global economy,” said the bank.

“The risk of reintroduction of restrictions is a risk to the optimistic outlook of market participants regarding a rapid resumption of normal economic activity. “

The Nikkei 225 NKc1 futures was up 3.05% from the close of the cash contract on Monday. The Nikkei 225 .N225 index closed down 0.86% to 19,262 in the previous session.

Australian S & P / ASX 200 YAPcm1 futures rose 0.09% and Hong Kong Hang Seng .HSI .HSIc1 index futures increased 0.54%.

The three averages of the main US stocks have risen and are all below 20% of their record highs reached in February. The S&P 500 benchmark is on track for its best month since 1987, after trillions of dollars in stimulus have helped US stocks recover much of the ground lost since the coronavirus crisis hit the economy at a standstill.

But some analysts believe the gains could be limited unless progress is made in finding treatments for the disease.

The US dollar tumbled as risky traders cheered for the lock-in news, even though health experts warned that there are not enough coronavirus tests in the United States.

From Italy to New Zealand, governments have announced that the restrictions will be relaxed, while Britain has said it is too early to relax them. New York State will not reopen for several weeks.

On Wall Street, the Dow Jones Industrial Average .DJI rose 1.51%, the S&P 500 .SPX gained 1.47% and the Nasdaq Composite .IXIC added 1.11%.

The pan-European STOXX 600 index rose 1.77% and the tonnage of MSCI stocks around the world gained 1.76%.

Oil prices have declined sharply due to lingering concerns about oversupply and lack of storage space. The first month contract traded at below normal volumes on Monday, with traders moving into the following months in the futures contracts.

US crude CLc1 fell 23.55% to $ 12.95 a barrel and Brent crude was $ 20.07, down 6.39% on the day.

The US dollar fell as the more optimistic mood encouraged investors to switch to other currencies.

The dollar = USD index was down 0.17%, the EUR = up 0.05% to $ 1.0825.

The Japanese yen strengthened by 0.26% against the greenback to 107.30 for the dollar, while the British pound = traded for the last time at $ 1.2421, up 0.44%. on the day.

Reversing the trend, the Brazilian real BRL = was on track to close at a record level against the greenback.

Report by Chibuike Oguh; Editing by Sam Holmes

Our standards:Principles of the Thomson Reuters Trust.

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