ASIA SHARES SET FOR EARLY GAINS AS HOPE SPRINGS ETERNAL
Asian shares were poised to open higher on Thursday, May 21, 2020, after global equities and crude prices rallied overnight as investors pinned their hope on a rapid economic recovery spurred by limitless government support, Chris Prentice of Reuters reported.
Hong Kong futures edged higher, Nikkei futures were trading above the Nikkei 225 index's previous close while Australian shares were also set to rise. Global equities have received a boost this week as governments around the world gradually loosened their coronavirus lockdown restrictions, raising investor hopes the economic impact of the pandemic would be short-lived.
On Wall Street, the Dow Jones Industrial Average rose 1.52%, the S&P 500 gained 1.67%, and the Nasdaq Composite added 2.08%.
“A solid night for risk, with equities working, crude and copper pushing higher and again that should spill over into Asia trade,” Chris Weston, head of research at Melbourne-based brokerage Pepperstone, said in a note. Copper prices hit a two-month high ahead of a Chinese government meeting this week that is expected to boost demand with pledges of higher spending on infrastructure.