Home Stock & Shares Asia equity markets set to edge higher following Wall Street gains on oil rebound

Asia equity markets set to edge higher following Wall Street gains on oil rebound

by Jonathan Adams

Better-than-expected U.S. corporate earnings also lifted equities, prompting investors to edge out of perceived safe-haven assets like U.S. Treasuries

Asian equity markets were poised to edge higher on Thursday after rebounding crude prices and the promise of more U.S. government aid to ease the economic pain inflicted by the coronavirus crisis helped calm global equity markets.

Better-than-expected U.S. corporate earnings also lifted equities, analysts said, prompting investors to edge out of perceived safe-haven assets like U.S. Treasuries on Wednesday.

Australian S&P/ASX 200 futures were up 0.94per cent at 20:59 GMT, while Japan’s Nikkei 225 futures were down 0.18per cent.

The Nikkei 225 index closed down 1.97per cent at 19,280.78​​​ on Wednesday. The futures contract is up 0.15per cent from that close.​ Hong Kong’s Hang Seng index futures rose 0.13per cent.

On Wall Street, all 11 S&P 500 sector indexes traded higher as the U.S. Senate unanimously approved the new relief package, adding to trillions of dollars in stimulus that have helped Wall Street rebound from its March lows.

The House of Representatives is expected on Thursday to clear the relief, which would be the fourth coronavirus measure passed by Congress, and would boost the overall federal financial response to almost US$3 trillion.

In Europe, traders were buoyed after Italy breezed through a major debt sale on Tuesday and speculation continued that the European Central Bank would provide more support measures.

Still, it may take European Union countries until the summer if not longer to agree on how to finance aid to help economies recover from the pandemic as major disagreements persist, a bloc official said on Wednesday.

Brent oil rose more than 7per cent, after earlier in the day touching its lowest level since 1999, on the prospects for further production cuts to reduce the glut in the oil market, sending the S&P 500 energy index up 3.6per cent.

U.S. crude was trading up 4.72per cent to US$14.43 per barrel.

Dozens of vessels have been booked in recent days to store at least 30 million barrels of jet fuel, gasoline and diesel at sea, as on-land tanks are full or already booked, according to traders and shipping data reviewed by Reuters.

U.S. storage onshore is swiftly filling, with inventories now at 518.6 million barrels, not far from an all-time record.

On Wall Street, the Dow Jones Industrial Average rose 456.94 points, or 1.99per cent, to 23,475.82, the S&P 500 gained 62.75 points, or 2.29per cent, to 2,799.31 and the Nasdaq Composite added 232.15 points, or 2.81per cent, to 8,495.38.

Shares of U.S.-listed Chinese companies may face headwinds after the head of the U.S. securities regulator warned investors against putting money into Chinese companies due to ongoing governance issues with their disclosures.

MSCI’s gauge of stocks across the globe > gained 1.78per cent following a broad rally in Europe.

The dollar index rose 0.259per cent, with the euro down 0.13per cent to US$1.0808.

The Canadian dollar fell 0.14per cent versus the greenback at 1.42 per dollar after the nation’s death toll from the coronavirus rose by less than 10per cent for the third day in a row, data showed on Wednesday, and some provinces prepared to start lifting shutdowns imposed to fight the outbreak.

Gains in the oil market helped draw investors into riskier assets, pulling government bond yields higher.

Benchmark 10-year notes last rose 4/32 in price to yield 0.6175per cent, from 0.619per cent.

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
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