Asian stocks rose on Friday as markets meandered over news of the reopening of economies, mixed with concerns about the prolonged health risks of the new coronavirus.
The Japanese reference Nikkei 225
slightly increased in the morning trade. Kospi in South Korea
Certain regions of Japan are gradually easing the demands to stay at home and close certain businesses, while concerns are mounting over the increasing number of cases.
The Keidanren, which represents more than 1,000 Japanese companies and regional economic groups, has issued guidelines for safer work, including instructions for office workers to enter the office three days a week to minimize travel and adapt premises. for social distancing.
Wall Street recovered overnight after a sharp morning decline.
The S&P 500
climbed 1.2% to 2,852.20 on another trading day, as many stocks moved from the bottom of the rankings to the top after a few sharp reversals.
Wall Street has been hesitating for weeks as it digests the gargantuan market movements made earlier this year, first down more than 30% due to concerns about the coming recession, then up more than 30 % hoping for a relatively quick rebound.
Trading has been particularly erratic this week as investors rethink bets that reopening economies around the world will allow growth to return relatively quickly. Another possible surge in tensions between the world’s largest economies is also hitting markets, with President Donald Trump’s comments on China still weighing on them on Thursday.
Dow Jones industrial average
up 1.6% to 23,625.34. The Nasdaq composite
gained 0.9% to 8,943.72 after erasing its previous loss of 1.8%.
Thursday’s recovery was fueled in large part by a rally in stocks that have been clubbed for much of this year: the banks.
Financial stocks in the S&P 500 jumped 2.6% for the largest gain among the 11 sectors in the index. Wells fargo
increased 6.8% and Bank of America
added 4%. For much of this year, investors sold bank stocks, fearing that low interest rates and the severe recession would mean less profit for loans.
At the end of trading, over 75% of the shares in the S&P 500 were higher. In the morning, more than 90% were down.
Before the recession began, US stocks quickly lost just over a third of their value, as investors anticipated an avalanche of layoffs hitting the economy. These fears turned out to be true, and a report released Thursday showed that nearly 3 million American workers had applied for unemployment benefits. This brings the total to approximately 36 million people in the two months following the pandemic, which has resulted in numerous orders to stay at home and close businesses.
But stocks started to climb in late March after massive amounts of aid promised by the Federal Reserve and Capitol Hill convinced the markets that the worst scenario of a financial crisis would not happen.
Many professional investors have warned that the rally was overkill, given the degree of uncertainty over the duration of the recession.
Recently, concerns over the resumption of US-China tensions have also weighed on the markets. A deadly trade war between the two had driven the global economy before the pandemic broke out.
“I have a very good relationship,” said China chief Xi Jinping, who said Trump in an interview with Fox Business Network, “but I don’t – right now, I don’t want to talk to him. I don’t want to talk to her. “
Trump has also said the government plans to ban Chinese stocks on the US stock exchanges unless they comply with US accounting rules.
“We all have internal challenges with the shutdown of the economy, but entering a conflict with China adds an additional dimension of uncertainty,” said Mark Hackett, chief investment researcher at Nationwide.
The 10-year Treasury yield remained stable at 0.62%. It tends to fall when investors lower their expectations for the economy and for inflation.
Friday in Asia, the benchmark American crude
added 4 cents to $ 27.92 a barrel in ecommerce on the New York Mercantile Exchange. It jumped from $ 2.20 to $ 27.88 a barrel on Thursday. Brent
, the international standard, added 25 cents to $ 31.38 per barrel.
The US dollar
rose to 107.26 Japanese yen from 107.25 yen.