Asia Stocks to Follow U.S. Higher; Oil Below $13: Markets Wrap

Asian stocks looked set for modest gains after U.S. stocks climbed to a six-week high amid moves toward re-opening a number of major economies. Crude oil prices held most of their sharp losses from Monday.

Futures pointed higher in Japan, Australia and Hong Kong after the S&P 500 Index closed at its highest since March 10. S&P 500 futures dipped at the open. West Texas oil futures in New York held below $13 a barrel amid a glut of crude and selling by the biggest oil exchange-traded-fund. U.S. and European yields rose, while the dollar sank on Monday.

Investors will get a slew of corporate earnings and forecasts this week, with reports due from Amazon.com Inc., Barclays Plc and Samsung Electronics Co. Deutsche Bank AG unveiled a surprisingly good earnings report, though it warned about looming credit defaults. The European Commission plans to announcecapital-relief measures Tuesday to help keep loans flowing.

On thevirus front: a coronavirus vaccine could be available as early as this year, according to a coalition funding nine projects. U.S. cases rose at the slowest pace this month, while states including Florida and Ohio took steps toward easing restrictions. Italy reported the lowest levels of new infections in seven weeks and prepared to begin reopening.

“Despite the consistently awful incoming economic data, investors understandably seem to have taken comfort from tentative signs that measures to control the coronavirus are working,” Oliver Jones, markets economist at Capital Economics, wrote in a note.

These are the main moves in markets:

Stocks

  • S&P 500 futures fell 0.2% as of 7:01 a.m. in Tokyo. The S&P 500 advanced 1.4% at the close of trade in New York.
  • Nikkei 225 futures rose 0.5%.
  • Australia’s S&P/ASX 200 Index contracts ticked up 0.1%.
  • Hong Kong’s Hang Seng Index futures earlier climbed 0.5%.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4% Monday.
  • The yen was at 107.27 per dollar after appreciating 0.3%.
  • The offshore yuan was at 7.0919 per dollar.
  • The euro traded at $1.0827.

Bonds

  • The yield on 10-year Treasuries increased six basis points to 0.66%.

Commodities

  • West Texas Intermediate crude rose 1.3% to $12.92 a barrel after tanking 24%.
  • Gold was at $1,713.43 an ounce after losing 0.9%.

— With assistance by Luke Kawa, and Sarah Ponczek

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