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ASIAN STOCKS RISING DESPITE HIGHER COVID 19 INFECTION RATES

Asian stocks were set to edge up on Tuesday after oil prices rose and technology firms pushed Wall Street higher, although investors remained worried about fresh coronavirus outbreaks across the globe, Jessica DiNapoli wrote for Reuters on June 23, 2020.


New infections spiked in Latin America, in Brazil in particular, while New York City, the epicenter of the US outbreak, eased restrictions after 100 days of lockdown. “We’re looking for a modestly positive day,” said Michael McCarthy, chief markets strategist at CMC Markets. “Markets look frothy based on a V-shaped recovery.” McCarthy added that data on manufacturing will impact the markets in the day ahead, adding that the data may be much worse than expected.

Australian S&P/ASX 200 futures rose 0.58% in early trading. Japan’s Nikkei 225 futures added 1.34% and Hong Kong’s Hang Seng index futures were up 0.80%.In a sign there was still some demand for safe havens, spot gold added 0.1% to $1,755.53 an ounce.

“Global financial markets began the week slowly as investors and businesses focus on (the end of the quarter) in what has inevitably been the worst quarter for economic growth since World War II,” ANZ Research said in a note. “If nothing else, expect volatility.” On Wall Street, the Dow Jones Industrial Average rose 0.59%, the S&P 500 gained 0.65% and the tech-heavy Nasdaq Composite added 1.11% to set a record closing high.

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