for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Money News

Asian markets set to push higher after overnight gains

(Reuters) - Asian markets look set to rise on Tuesday, building on newfound momentum after bargain hunters helped a recovery in U.S. markets after last week’s selloff.

FILE PHOTO: A man wearing a protective face mask, following the coronavirus disease (COVID-19) outbreak, is silhouetted in front of a stock quotation board outside a brokerage in Tokyo, Japan, June 15, 2020. REUTERS/Kim Kyung-Hoon

Australian S&P/ASX 200 futures YAPcm1 were up 0.64% in early trading, while Japan's Nikkei 225 futures NKc1 rose 0.21%. Hong Kong's Hang Seng index futures .HSI.HSIc1 were up 0.61%.

E-mini futures for the S&P 500 EScv1 were up 0.16%.

Asian markets have been buoyed by positive signs around China’s economic recovery, although the coronavirus pandemic continues to wreak economic havoc globally and raise concern about high valuations.

Investors will remain cautious ahead of the first U.S. presidential debate set to take place later on Tuesday, and as lawmakers continue sporadic efforts to cobble together additional economic stimulus.

U.S. consumer confidence and home price data is also due on Tuesday. Upcoming U.S. economic data should help show how well the country is positioned to rebound from pandemic lockdowns, and how necessary more stimulus will be.

“Globally, a loss of momentum and the renewed rise in COVID-19 infection rates points to the need for additional fiscal and monetary support. That policy outlook is continuing to provide a supportive backdrop to equities despite recent volatility,” wrote ANZ Bank New Zealand in an analyst note.

U.S. traders posted strong gains on Wall Street on Monday, particularly in hard-hit sectors like hotels, banks and airlines which posted sizeable gains after several days of decline.

On Wall Street, Dow Jones Industrial Average .DJI rose 1.51%, the S&P 500 .SPX gained 1.61%, and the Nasdaq Composite .IXIC was up 1.87%.

MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.68%, while the STOXX 600's banking stock index was up 5.6%, after hitting a fresh all-time low on Friday .SX7P.

But there were still some signs of caution, as Europe is experiencing a rise in new COVID-19 infections and some U.S. states continue to grapple with high case numbers.

Safe-haven spot gold XAU= added 1.2% at $1,881.49 an ounce. U.S. gold futures GCc1 gained 0.89% at $1,874.30 an ounce.

But the U.S. dollar dropped from a two-month high against a basket of currencies Monday, with the dollar index falling 0.3%, its biggest daily percentage drop in roughly three weeks.

The weakening U.S. dollar helped drive up oil prices. Brent crude LCOc1 settled up 51 cents to $42.43 a barrel, or 1.22%. U.S. West Texas Intermediate CLc1 settled up 35 cents at $40.60 a barrel, or 0.87%.

U.S. Treasury yields were largely flat, with no fresh data or issuances shaking up the market. The benchmark 10-year yield US10YT=RR was up 0.2 basis point on the day at 0.661%.

Reporting by Pete Schroeder; editing by Richard Pullin

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up