Asian stocks and US futures rebounded on Monday as investors hoped that the battle against the coronavirus pandemic could progress in some hard-hit regions.
The Nikkei 225
in Tokyo gained 2.2% while the Hang Seng in Hong Kong
increased by 1%. Kospi in South Korea
added 2.5% while the S & P / ASX 200
in Sydney increased 3.3%. Shares also rose in Taiwan
and Southeast Asia.
The Shanghai market was closed on a public holiday.
In New York, S&P 500 futures
were about 3% higher.
Gains followed another session of losses Friday after the United States said employers cut 701,000 more jobs than they added last month, the first decline in nearly a year. decade. Investors fled the market before the weekend. Oil prices were higher.
Reports have shown that the number of deceased appears to be slowing in New York, Spain and Italy. The news was greeted with caution by leaders, who also noted that any progress could easily be reversed if people did not continue to follow strict restrictions.
“Hundreds of people are dying every day from the pandemic, but less than in previous days, giving markets hope that the lockdowns will finally start to work,” said Oanda’s Jeffrey Halley in a comment.
“Like the rest of the world, the financial markets are looking for hope,” he said.
The situation has deteriorated in other areas as infection rates have increased.
Japanese Prime Minister Shinzo Abe was to announce a state of emergency on Tuesday to further curb public activity and contain the epidemic. The Thai government is reportedly considering extending its 22-hour week. at 6 a.m. curfew.
New York’s first reaction to Friday’s appalling US employment report was to take the step. But Wall Street slipped throughout the day as investors prepared for more bad news.
The losses accelerated after the Governor of New York announced the largest daily jump to date for coronavirus deaths in the hardest-hit state in the country.
The S&P 500
fell 1.5% to 2,488.65. Dow Jones industrial average
lost 1.7% to 21,052.53, and the Nasdaq
lost 1.5% to 7,373.08. Small business stocks fell much more than the rest of the market.
The S&P 500 is down 26.5% from its record high in February, reflecting the growing assumption that the economy will sink into a sudden and extremely brutal recession.
Traders are preparing for potential new doses of bad news: potentially frightening calendar events include Thursday’s weekly report on unemployment benefit claims, which was closest to real-time measurement of how whose fierce layoffs swept the country. Businesses will also soon start reporting profits for the first three months of the year, with the publication season starting seriously in two weeks.
Friday’s job report likely did not fully capture the extent of the recent job losses, which are accelerating day by day, as it collected data before home stay orders became widespread .
The panic sales that dominated the first few weeks of the sale have eased somewhat since Washington unleashed massive amounts of aid to help markets and the economy. The Federal Reserve has promised to buy as many treasury securities as necessary to keep the credit markets running smoothly, and Congress has approved a $ 2.2 trillion bailout for the economy.
But only a spike in the number of new coronavirus cases could clarify the depth and prolongation of the economic downturn.
The United States has more than 377,000 confirmed cases of the virus, bringing the global tally of more than 1.25 million established by Johns Hopkins University.
Energy markets have recovered somewhat due to expectations that Saudi Arabia and Russia may ease their price wars. However, the benchmark American crude
was down Monday, falling from $ 1.52 to $ 26.82 a barrel in ecommerce on the New York Mercantile Exchange. On Friday, it climbed 11.9% to $ 28.34 a barrel, adding to its jump of almost 25% the day before.
, the international standard, fell $ 1.06 to $ 33.05 a barrel. It rose $ 4.17 on Friday to $ 34.11 a barrel.
The world is inundated with oil as energy demand plummets, and President Donald Trump said Thursday that his rivals may be on the verge of cutting production to support the price of oil.
In currency trading, the dollar
rose to 108.87 Japanese yen from 108.48 yen on Friday.