Asian stocks rise as drug testing, the data push Wall Street higher


WASHINGTON (Reuters) – Asian stocks were set to climb on Wednesday, after the other at the end of Wall Street thrust in response to the optimistic results of the test for a COVID-19 treatment and data showing that AMERICAN consumers spent large in May.

FILE PHOTO: a man wearing A protective mask, following the coronavirus disease (COVID-19) outbreak, is silhouetted in front of a stock quotation board outside a brokerage in Tokyo, Japan, on June 15, 2020. REUTERS/Kim Kyung-Hoon

The prospects of support costs of the Federal Reserve and the Bank of Japan has also supported the global stock markets.

“It was a trifecta of positive points today,” said Jeffrey Carbone, a partner at the North Carolina-based cornerstone of the Wealth, referring to the U.S. data, drug testing, and the central bank promises.

The upbeat sentiment weighed on US Treasury securities and demand for the lower-rated southern European debt. Not everyone was in the mood for risk, however, with safe-gold pushed higher on the news of a new outbreak of sars coronavirus in China.[GOL/]

“We are potentially more positive news in the fight against COVID-19,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina. “But while COVID is in most minds, in the stock market, it is all about the re-opening and the strong data suggest that the recovery is happening and faster than expected.”

At the beginning of his two-day testimony before Congress, Fed Chairman Jerome Powell said a full recovery is unlikely until the public is convinced that the disease had been contained.

In Asia, the Australian S&P/ASX 200 futures were up 0.5%, while japan’s Nikkei 225 futures rose 0.2%, but a decrease of 0.6% of the underlying index of the Tuesday close.

Hong Kong’s Hang Seng index futures were down 0.3%.

U.S. retail sales jumped to a record 17.7% in May, blowing past the 8% increase and analysts, supporting views the recession in the UNITED states can be a draw at the end.

Also cheering investors have been the results of the test showing that dexamethasone, a cheap and widely used of steroids, the reduction of the mortality rate by about one-third among the most severely ill COVID-19 patients.

On Wall Street, the Dow Jones Industrial average rose 2.0%, the S&P 500 has gained 1.9% and the Nasdaq Composite added 1.8%. After a huge 3% rally in the main European stock exchanges.

The MSCI gauge of stocks around the world gained 2.2%.

News also contributed to the bullish sentiment.

Germany’s monthly ZEW survey of investor sentiment survey showed that investors are convinced that europe’s largest economy will be over the worst of the coronavirus impact by the end of the European summer.

The dollar was mostly stronger, with the euro down 0.55% to $1.126 and the Japanese yen (jpy rising 0.01% to 107.32.

The pound sterling has increased in the unemployment figures which were not as bad as feared and more user-friendly, brexit talks.[GBP/]

The BOJ has increased its lending packages to cash-strapped businesses to $ 1 trillion, about $ 700 billion, while keeping rates unchanged, sticking to its view that the Japanese economy will gradually recover from the pandemic.

The yield of the benchmark US 10-year Treasury bonds rose 4.7 basis points to 0.7495%.

The German, the French, the Dutch, and the other, yields have also increased. Riskier Italian yields have fallen to their lowest level since the end of the month of March, and the iTraxx European crossover index, which reflects the cost of insurance against junk-rated corporate bonds default, has fallen to its lowest level in six days. [GVD/EUR]

Reporting by Katanga Johnson; edited by Sam Holmes

Our Principles:Thomson Reuters Trust Principles.


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