SYDNEY/NEW YORK (Reuters) – Asian stocks dithered on Wednesday as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery while oil prices eased on oversupply fears.

MSCI’s broadest index of Asia-Pacific shares outside Japan were a tad lower after hitting a 4-1/2 month high just on Tuesday.

Chinese shares flickered between green and red. Australian shares were down 0.4% as were indexes for New Zealand and South Korea. Japan’s Nikkei was off 0.1% and Hong Kong’s Hang Seng index was slightly firmer.

E-mini futures for the S&P 500 added 0.18%.

Overnight, U.S. stocks fell, halting a five-day winning streak by the benchmark S&P 500 index, its longest this year and driven by better-than-expected economic data.

Following the recent rally, the declines looked like a consolidation, with the markets largely in “wait and see mode” ahead of the upcoming earnings session, said NAB economist Tapas Strickland.

Second-quarter earnings season will begin in earnest from next week.

“It will be important to watch the number of U.S. deaths in coming weeks and whether greater questions will be asked about the extent of necessary restrictions,” Strickland added.

California reported more than 10,000 coronavirus cases on Tuesday, a record rise for a single day that also surpassed the number of contact tracers recently trained by the state to detect and prevent potential outbreaks.

Coronavirus cases were also on the rise in the Australian state of Victoria, which led to lockdown measures being reimposed in Melbourne, the country’s second-biggest city.

“The second wave of infection will see Victorian economic activity fall sharply and it will continue to lag the rest of Australia,” said NAB economist Kaixin Owyong.

Victoria makes up around a quarter of Australian economic activity, she said.

Citi analysts predicted global equities would hang around current levels in twelve months’ time.

“We expect bullish and bearish forces to cancel each-other out,” they said in a note. “We would not chase markets higher from current levels, but would prefer to wait for the next dip.”

Citi has “overweight” positions on U.S. and Emerging Markets equities.

Most major currencies were trapped in a range.

The U.S. dollar was 0.15% higher on the Japanese yen at 107.65.

The risk sensitive Australian and New Zealand dollars were a shade weaker at $0.6940 and $0.6544, respectively.

The euro was barely changed at $1.1273.

In commodities, gold hovered near a recent 8-1/2 year peak as investors preferred safe-haven assets. Spot gold was last a shade weaker after two straight days of gains at 1,792.5 per ounce.

Brent crude futures fell 8 cents, or 0.2%, to $43 a barrel. U.S. West Texas Intermediate (WTI) crude futures slipped 6 cents, or 0.15%, to $40.56 a barrel.

(source) Investing.com – European stock markets are set to open higher Monday amid hopes of a global economic recovery aided by more stimulus, but concerns remain over the increasing number of new coronavirus cases.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 1.4% higher. CAC 40 futures in France were up 1.9%, while the FTSE 100 futures contract in the U.K. rose 1%.

Economic data of late has tended to point to a reasonably prompt economic recovery around the world. The U.S. recorded last week the addition of 4.8 million jobs in June, much more than expected, while PMI data in China and throughout Europe has tended to suggest renewed confidence of a brisk pickup in activity.

Additionally, the U.S. Congress is set to resume talks on the next stimulus bill later this month, while Germany, Europe’s economic powerhouse, will be keen to cement the structure of a Covid-19 recovery fund as it now has the six-month rotating presidency of the European Union.

A meeting of euro area finance ministers on Thursday could be telling before a looming July 17-18 summit – crucial to securing agreement on a recovery fund.

The likely need for additional stimulus grows as the number of Covid-19 cases shows no signs of slowing down. The World Health Organization reported the highest number of cases over a 24-hour period, with the U.S. reporting a spike in cases over the long holiday weekend.

Turning back to Europe, Swiss manufacturer Geberit (SIX:GEBN)said Monday that its sales fell 9.8% in the first half of the year due to the impact of the coronavirus pandemic.

German factory orders continued the recent data trend of suggesting a recovery, jumping 10.4% in May, admittedly slightly below estimates, after falling by a revised 26.2% the previous month.

Later in the session, the June construction PMI release from the U.K. will be studied, as will eurozone retail sales for May.

Oil prices traded in a mixed fashion Monday, as the continued growth of new coronavirus cases in the U.S. weighed on the American benchmark, WTI futures, while the global benchmark Brent futures posted small gains on falling supply.

Coronavirus cases in the U.S. increased by almost 56,000 on Sunday, according to Johns Hopkins University. raising concerns that this jump could hit oil demand in the United States.

Elsewhere, production by the Organization of the Petroleum Exporting Countries and allies, including Russia, has fallen to its lowest in decades, as the group cuts output by a record 9.7 million barrels per day for a third month in July. 

At 2:05 AM ET, U.S. crude futures traded 0.2% lower at $40.58 a barrel. The international benchmark Brent contract rose 0.9% to $43.19.

Elsewhere, gold futures fell 0.4% to $1,782.95/oz, while EUR/USD traded at 1.1290, up 0.4% on the day.

SYDNEY (Reuters) – Asian shares scaled four-month peaks on Monday as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, even as surging coronavirus cases delayed re-openings across the United States.

MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1% to its highest since February.

Eyes were on Chinese blue chips, which jumped 3%, on top of a 7% gain last week, to their loftiest level in five years. Even Japan’s Nikkei, which has lagged with a soft domestic economy, managed a rise of 1.3%.

“We think there is a case for raising tactical allocation on Asian equities in the context of global equity portfolios,” wrote analysts at Nomura in a note.

“We see a number of catalysts that could drive Asia ex-Japan (AeJ) equities’ outperformance over U.S. equities in the near term,” they added. “Better COVID-19 trends and mobility data in economies/markets that dominate the AeJ index should translate into faster economic recovery vs the U.S.”

E-Mini futures for the S&P 500 also firmed 0.8%, while EUROSTOXX 50 futures added 1.8% and FTSE futures 1.5%.

Most markets had gained ground last week as a raft of economic data from June beat expectations, though the resurgence of coronavirus cases in the United States is clouding the future.

In the first four days of July alone, 15 states have reported record increases in new cases of COVID-19, which has infected nearly 3 million Americans and killed about 130,000, according to a Reuters tally.

“It is very clear that the U.S. never got the COVID outbreak under control the way that other countries did. By reopening the economy too soon, we have seen a frightening increase in the pace of new cases,” said Robert Rennie, head of financial market strategy at Westpac.

Analysts estimate that reopenings impacting 40% of the U.S. population have now been wound back.

“So markets will have to climb a wall of worry in July as economic activity likely softens from the V-shaped recovery seen over recent months,” warned Rennie. “We must remember too that U.S. and China relations are deteriorating noticeably.”

Two U.S. aircraft carriers conducted exercises in the disputed South China Sea on Saturday, the U.S. Navy said, as China also carried out military drills that have been criticised by the Pentagon and neighbouring states.

The risks, combined with unceasing stimulus from central banks, have kept sovereign bonds supported in the face of better economic data, with U.S. 10-year yields holding at 0.67% and well off the June top of 0.959%.

Analysts at Citi estimate global central banks are likely to buy $6 trillion of financial assets over the next 12 months, more than twice the previous peak.

Major currencies have been largely range bound with the dollar index at 97.189 having spent an entire month in a snug band of 95.714 to 97.808.

The dollar was a shade firmer on the yen at 107.72 on Monday, while the euro edged up to $1.1271.

In commodity markets, gold has benefited from super-low interest rates across the globe as negative real yields for many bonds make the non-interest paying metal more attractive.

Spot gold traded at $1,772 per ounce just off last week’s peak of $1,788.96. [GOL/]

Oil prices were mixed in early trade with Brent crude futures up 19 cents at $42.99 a barrel, while U.S. crude eased 23 cents to $40.42 amid worries the surge in U.S. coronavirus cases would curb fuel demand. 

NEW YORK (Reuters) – Asian stocks were likely to track a firmer Wall Street session on Friday after strong U.S. jobs data although growing Sino-U.S. tensions and a worrying surge in coronavirus cases is likely to cap gains.

{{178|Japan’s NiNikkei 225 futures rose 0.45% and Australia’s S&P/ASX 200 futures climbed 0.58%.

E-mini futures for the S&P 500 rose 0.14%.

“While June data reflected a big improvement in the U.S. labor market, the recent sharp acceleration in new virus cases plus the prospect of an end to unemployment benefits by the end of July are two big layers of uncertainty,” said NAB Markets analyst Rodrigo Catril, adding that the uptick in U.S. cases could mean extended headwinds for the labor market.

Wall Street ended Thursday higher following a record increase in payrolls and a decline in unemployment. U.S. markets are closed on Friday in observance of Independence Day.

However, investor focus is shifting to worsening strains between China and the United States.

More than 75 U.S. members of congress sent a letter to the President Donald Trump urging him to take make a formal determination on whether China’s treatment of Muslim Uighurs and other groups constitutes an atrocity.

The U.S. State Department also warned American companies including Amazon.com Inc (NASDAQ:AMZN), Walmart (NYSE:WMT) Inc and Apple Inc (NASDAQ:AAPL) to check their supply chains and ensure they are not doing business with entities linked to alleged human rights abuses against Uighurs in China’s Xinjiang province.

Separately, Congress passed legislation seeking to punish banks that do business with Chinese officials who implement Beijing’s draconian new national security law on Hong Kong.

MSCI’s gauge of stocks across the globe gained 0.92%. The Dow Jones Industrial Average rose 0.36%, the S&P 500 gained 0.45% and the Nasdaq Composite added 0.52%.

The positive economic data also pushed oil prices higher.

Brent crude futures settled at $43.14 a barrel, rising $1.11, or 2.6%. U.S. West Texas Intermediate (WTI) crude futures settled at $40.65 a barrel, up 83 cents, or 2.1%.

Investors still embraced the safe-haven dollar and gold, which usually rise when risk appetite declines, as an acceleration in new COVID-19 cases across the country prompted fresh restrictions.

The dollar index rose 0.058%, with the euro up 0.01% to $1.1239.

The Japanese yen weakened 0.02% versus the greenback at 107.53 per dollar, while sterling last traded at $1.2468, up 0.02% on the day.

Spot gold rose 0.4% to $1,777.04 per ounce

U.S. Treasury yields ended the day lower ahead of the July 4 long weekend, with the benchmark 10-year yield fell 1.1 basis points at 0.6709%.

NEW YORK (Reuters) – Asian stocks were set to track Wall Street gains on Thursday as investors cheered signs the global economy was emerging from its coronavirus hibernation although trade is likely to be choppy as fresh concerns about Hong Kong keep investors cautious.

Also adding to market apprehension is June U.S. employment data due later in the day, which will show if the world’s largest economy can sustain its fragile recovery as new COVID-19 cases accelerate in several southern states.

E-mini futures for the S&P 500 edged 0.06% higher, while Australian S&P/ASX 200 futures climbed 0.71% and {{178|Japan’s NiNikkei 225 futures rose 0.4%.

Economists polled by Reuters expect private employers to show 2.9 new million new jobs June, which would follow a surprise increase in May. Casting some doubt over that projection, however, was a smaller-than-expected increase in jobs seen in the ADP report on Wednesday.

“The weaker than expected ADP report suggests some downside risk to consensus,” said Joseph Capurso, head of international economics at Commonwealth Bank of Australia (OTC:CMWAY).

Wall Street shrugged off the miss and ended Wednesday trading higher after key economic indicators showed a rebound in Chinese manufacturing activity as it recovers from the pandemic and sharp declines in European factory activity eased.

In Hong Kong, Hang Seng index futures lost 0.42%. Markets in the Asian financial hub were closed on Wednesday, the same day police in the city arrested more than 300 people protesting sweeping new laws introduced by China to snuff out dissent.

Those developments have raised concerns about China’s already strained relations with its major western trading partners, particularly the United States.

The U.S. House of Representatives passed legislation on Wednesday that would penalize banks doing business with Chinese officials who implement a national security law.

On Wall Street, however, the focus was on positive data. The MSCI’s gauge of stocks across the globe gained 0.45% and the S&P 500 rose 0.50%.

The increase in manufacturing activity also propelled oil prices higher in anticipation of increased demand while gold and the dollar fell as the encouraging reports caused investors to take on more risk.

Brent crude rose 76 cents, or 1.8%, to settle at $42.03 a barrel. U.S. crude rose 55 cents, or 1.4%, to settle at $39.82 a barrel.

The improved sentiment weighed on the safehaven greenback with the dollar indexdown 0.265% and the euro up 0.03% to $1.1253.

The Japanese yen strengthened 0.05% to 107.42 per dollar, while sterling was last trading at $1.2477, up 0.06% on the day.

U.S. gold futures settled 1.1% lower, at $1,779.90.

U.S. Treasuries were weighed by the positive economic data and Federal Reserve meeting minutes, which signaled yield curve control was not coming anytime soon.

The benchmark 10-year yield was last up 2.9 basis points at 0.6824% on Wednesday.

TOKYO (Reuters) – Asia’s factory pain showed signs of easing in June, as a rebound in China’s activity offered some hope the region may have passed the worst of the devastation caused by the coronavirus pandemic.

But sluggish global demand and fears of a second wave of infections will tame any optimism on the outlook and keep pressure on policymakers to support their ailing economies.

China’s factory activity grew at a faster clip in June after the government lifted coronavirus lockdown measures, a private sector survey showed on Wednesday.

Manufacturing activity also expanded in Vietnam and Malaysia, pointing to a slow but steady recovery ahead.

Japan and South Korea continued to see manufacturing activity shrink, underscoring the heavy blow the pandemic dealt to their export-reliant economies, although the pace of their declines slowed.

“The chance of a V-shape recovery in the manufacturing sector appears slim at this stage,” said Joe Hayes, economist at IHS Markit, which compiles the survey.

“We’re still awaiting signs of meaningful improvement in Japan’s manufacturing sector, with the PMI for June failing to stage a substantial recovery.”

China’s Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 51.2 in June from 50.7 in May, marking the highest reading since December 2019. That followed a similarly upbeat reading from the Chinese government’s own PMI on Tuesday.

Vietnam and Malaysia also saw their PMIs crawl back above the 50-mark separating growth from contraction, a welcome sign for policymakers struggling to combat the pandemic’s fallout.

But analysts expect any recovery in the region to be slow.

While China’s export orders shrank at a slower pace, its employment contraction worsened, the PMI showed, underscoring the fragile recovery in the world’s second-largest economy.

“Overall manufacturing demand recovered at a fast clip, but overseas demand remained a drag,” said Wang Zhe, senior economist at Caixin Insight Group.

Japan’s PMI rose to a seasonally adjusted 40.1 in June, while South Korea’s PMI ticked up to 43.4 – both remaining far below the boom-or-bust threshold of 50.

Separately, a Bank of Japan survey showed big manufacturers’ confidence sinking to levels last seen during the 2009 global financial crisis, reinforcing expectations the country was sinking deeper into recession.

“If demand doesn’t rebound fast enough, companies will have to shed jobs,” said Shinichiro Kobayashi, senior economist at Mitsubishi UFJ (NYSE:MUFG) Research and Consulting. “That will delay Japan’s economic recovery, which could end up in a L-shape.”