· Asia stocks scale 3-month peak, resilient to U.S. rioting
Asian shares advanced to three-month highs on Monday as progress on re-opening economies helped offset jitters over riots in U.S. cities and unease over Washington’s power struggle with Beijing.
There was also relief that while President Donald Trump began the process of ending special U.S. treatment for Hong Kong to punish China, he left their trade deal intact.
The hopeful signs in China helped lift MSCI's broadest index of Asia-Pacific shares outside Japan 2.45% to its highest since early March. Tokyo's Nikkei .N225 added 0.84% to also reach a three-month peak.
· China shares surge on strong factory data; securities firms shine
Chinese shares ended sharply higher on Monday, on stronger manufacturing data in May and after U.S. President Donald Trump’s mild reaction to China’s security legislation for Hong Kong.
At the close, the Shanghai Composite index was up 2.21% at 2,915.43. It was the biggest one-day percentage gain for the index since March 24.
China’s factory activity unexpectedly returned to growth in May as strict measures to contain the coronavirus outbreak were eased, but the improvement was marginal as export orders continued to shrink, a private business survey showed on Monday.
· Nikkei rallies to 3-month high as U.S.-China worries ease for now
Japan’s stock benchmark Nikkei rose to a three-month high on Monday, as U.S. President Donald Trump’s threats against China over new security laws for Hong Kong were less threatening than feared.
The Nikkei average gained 0.8% to 22,062.39, its highest close unseen since Feb. 26.
The rally was led by short-covering as some investors had worried Trump could ditch his trade deal with China or call an immediate end to privileges to Hong Kong after the Chinese parliament passed new security legislation for the semi-autonomous city last week.
Investors are now focused on the global economic recovery as more countries gradually move to re-open their economies — the main driving force behind the market’s rally since late March.
Japan’s capital of Tokyo eased curbs to contain the coronavirus on Monday, by allowing gyms and theatres to reopen in a phased relaxation process.
Clouding the outlook, however, are jitters over protests and riots in many U.S. cities after an unarmed black man died in police custody in Minneapolis last week.
· European shares rise in relief over Trump's China response
European shares edged closer to a three-month high on Monday on hopes of a post-coronavirus global recovery, with investors relieved that the U.S. response to China’s national security law on Hong Kong was not as bad as feared.
The pan-European STOXX 600 index rose 1% by 0723 GMT and hovered near its strongest level since March 9, led by gains in banks, miners and travel & leisure stocks.
U.S. President Donald Trump began the process of ending special treatment for Hong Kong to punish China on Friday, but did not mention actions that could undermine the Phase One trade deal.
Meanwhile, business activity surveys showed China’s factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened as businesses emerged from shutdowns.
Euro zone manufacturing PMI numbers are due later in the day.
Reference: Reuters, CNBC
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