Asian stocks, oil higher as economies emerge from lockdown By Reuters

© Reuters. FILE PHOTO: People are seen on a pedestrian overpass with an electronic board showing the Shanghai and Shenzhen stock indexes in Shanghai

By Alun John and David Henry

HONG KONG/NEW YORK (Reuters) – Asian stocks rose on Tuesday, tracking a late Wall Street rally as governments eased coronavirus lockdowns while oil extended gains on expectations fuel demand would begin to pick up.

rose 4.3% to $28.37 a barrel, up for a sixth straight day, and rose $1.38 to $21.77 a barrel, as countries began loosening coronavirus restrictions and crude supply cuts took effect.

“The market continues to price in the idea that things are improving,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

In reduced trade, with China, Japan and South Korea on holiday, Australia’s rose 1.26% and Hong Kong’s climbed 0.66%.

U.S. stock futures rose 0.75%.

The rally followed late U.S. gains with the S&P 500 ending up 0.42%, driven by technology names including Microsoft (NASDAQ:), Apple (NASDAQ:) and Amazon (NASDAQ:).

Their strength overcame drops in airline shares of between 5% to 8% after legendary investor Warren Buffett said his Berkshire Hathaway (NYSE:) had sold its carrier holdings.

MSCI (NYSE:)’s broadest index of Asia-Pacific shares outside Japan rose 0.56%.

The upturn came on more optimistic statements from the governors of California and New York for reopening businesses. Andrew Cuomo of New York on Monday outlined a phased reopening in the U.S. state hardest hit by the COVID-19 pandemic.

Analysts at Commonwealth Bank of Australia (OTC:) said the structure of the oil price rises, with bigger gains in nearer-dated contracts, suggested expectations of more production cuts and a restoration of fuel demand later this year.

They added, though, that this meant prices are highly unlikely to recover the big falls since the start of the year.

The optimism about an economic recovery from the coronavirus outbreak outweighed, at least briefly, the latest war of words between China and the United States, which had dragged down Asian and European shares on Monday.

An internal Chinese report warns that Beijing faces a rising wave of worldwide hostility in the wake of the outbreak that could tip relations with the United States into confrontation, people familiar with the paper told Reuters.

The dropped 0.12%, as commodity currencies inched up, with the Australian dollar rising 0.4% against the greenback.

lost 0.2% to $1,699 an ounce.

(This story corrects U.S. crude price rise in second paragraph to $1.38 not 1.38%)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.