Asian stocks rise on global lockdown easing optimism
Asian stocks jumped today on optimism over the loosening of lockdowns around the world and hopes the global economy can get back on track.
Japan’s Nikkei 225 rose 2.8 per cent to 21,322, MSCI’s broadest index of Asia-Pacific shares outside Japan added1.4 per cent and South Korea rose 1.1 per cent.
There were also hopes that US and European stocks would follow the lead of Asia, with futures for the S&P 500 up 1.3 per cent, Eurostoxx 50 futures up 0.6 per cent and FTSE futures up 1.8 per cent.
Hong Kong’s Hang Seng index rose 2.1 per cent, driven by increased Chinese business stimulus and hopes the global economy was picking up steam.
This came despite increased tensions between the US and China over trade, coronavirus and China’s plans for strict new security laws in Hong Kong.
“U.S.-China tensions continue to simmer in the background, but equity investors appear more interested on the prospect of economies reopening around the globe,” said Rodrigo Catril, a senior FX strategist at NAB.
“On this score, Japan ended its nationwide state of emergency, Spaniards have returned to bars in Madrid wearing masks and England will reopen some businesses on 1 June.”
Against a basket of currencies the dollar was 0.2 per cent lower at 99.788.
Analysts at CBA felt the dollar could break higher should China-US tensions actually threaten their trade deal.
“Although not our central scenario, if the U.S. or China were to withdraw from the Phase One deal, USD would sharply appreciate while CNH, AUD and NZD would decline,” they wrote in a note to clients.
Oil prices were supported by falling supplies as OPEC cut production and the number of U.S. and Canadian rigs dropped to record lows for the third week running.
Brent crude futures rose 34 cents to $35.87 a barrel, while U.S. crude gained 82 cents to $34.07.