· Stocks make cautious gains as U.S.-China frictions slow recovery rally
Asian stocks rose on Tuesday as investors’ focus on the prospects of a global coronavirus recovery won out over familiar worries about U.S.-China relations and the depth of economic damage.
Hampering broader global risk appetite, however, was U.S. President Donald Trump’s vow to use force to end violent protests in American cities, which kept Wall Street stock futures negative in Asia.
MSCI’s broadest index of Asia-Pacific shares outside Japan, which had its best day in two months on Monday, extended its rally without panache - rising 0.41%.
· Japan stocks hit highest in more than 3 months on economic hopes
Japanese shares hit a more than three-month high on Tuesday as hopes for a global economic recovery bolstered expectations for a rebound in corporate earnings, with more countries gradually reopening after coronavirus-related lockdowns.
The Nikkei index ended 1.19% higher at 22,325.61 points after earlier rising to its highest level since Feb. 26. Industrial and technology shares led the advance.
Japanese stocks also got a boost from overnight Wall Street gains, after U.S. manufacturing data suggested the worst of the sector’s virus-related slump may be over.
The Nikkei has rallied around 36% from its low of March 16 as coronavirus infections in Japan fell, prompting the officials to remove lockdown restrictions and allow more retailers to resume operations.
However, some investors remain cautious due to uncertainty caused by mass protests in the United States against police brutality and diplomatic tension between Washington and Beijing over civil liberties in Hong Kong.
· China shares end higher on optimism over govt economic recovery policies
China shares closed higher on Tuesday as optimism over the government’s new policies seeking to support the economy trumped concerns over deteriorating Sino-U.S. relations.
The Shanghai Composite index closed up 0.2% at 2,921.40. The blue-chip CSI300 index was up 0.31%, with its financial sector sub-index higher by 1.04%, the consumer staples sector down 0.35%, the real estate index up 2.41% and the healthcare sub-index down 0.91%.
· European markets open higher against backdrop of U.S. unrest
European stocks opened higher Tuesday against a backdrop of unrest and violence in the U.S. as protests continue over the killing of George Floyd, an unarmed black man, by police last week.
The pan-European Stoxx 600 climbed 1% at the start of trading, with autos adding 2.1% to lead gains as all sectors and major bourses entered positive territory.
Reference: CNBC, Reuters
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