• The Financial District

ASIA SHARES EDGE HIGHER AFTER US RALLY

Asian shares were mostly higher on Wednesday with another mood boost from Wall Street, but fears persist over the surge in coronavirus cases in parts of the world, Yuri Kageyama reported for the Associated Press (AP) on Wednesday, June 24, 2020.


Japan’s benchmark Nikkei 225 edged 0.1% higher to 22,576.63. Australia’s S&P/ASX 200 also picked up 0.1% to 5,958.40. South Korea’s Kospi added 1.5% to 2,162.46. Hong Kong’s Hang Seng slipped 0.1% to 24,854.72, while the Shanghai Composite added 0.2% to 2,976.39. On Wall Street, the S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.

Analysts are warning that, despite the recent market rallies, there is little reassurance infections won’t keep spreading, given the growing numbers in some parts of the US, Brazil and Asia. On Wall Street, the S&P 500 rose 0.4% and is on pace for its third straight monthly gain. The Nasdaq composite, which is heavily weighted with technology stocks, climbed to an all-time high for the second day in a row. Bond yields rose, another sign of increasing confidence in the economy.

“The nuance though is that the recovery falls short of being entrenched,” said Hayaki Narita of Mizuho Bank, adding trade contractions for various countries this year are expected to be the worst ever. Prakash Sapal, senior economist for ING, said the focus is slowly shifting back to the COVID-19 pandemic from optimism about a rebound from loosening lockdown restrictions. “The recent acceleration in infections has rekindled concern that governments will be forced to shut down their economies once again, squandering the chance for the much-hoped-for economic bounce back,” he said in a report.