EconomyMarkets

Asia joins global equity rebound; oil slips on COVID-19 worries By Reuters

© Reuters. TV camera men wait for the opening of market in front of a large screen showing stock prices at the Tokyo Stock Exchange in Tokyo

By Kevin Buckland

TOKYO (Reuters) – Asian stocks rose on Thursday, extending a rebound in global markets following a sharp selloff earlier this week, while oil prices eased again on worries about rising COVID-19 cases in some parts of the world.

Japan led gains, with the rallying 1.7%, after sliding 2% in each of the last two sessions.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, following a 0.9% decline the previous day. Chinese blue chips rose 0.3%.

“Overall I think markets are still skewed to taking on risk, and I don’t think we’ve seen the final record high by any means in the U.S. stock market or in global equities,” said Kyle Rodda, a market analyst at IG in Melbourne.

“At the end of the day, (the selloff earlier this week) was just markets whipping around as the froth has blown off risk assets.”

MSCI’s gauge of stocks across the globe added 0.2% on Thursday, following a 0.4% gain overnight.

On Tuesday, the index had slumped 0.8%, the most in four weeks, as market sentiment soured amid concerns that record coronavirus infections in India, likely restrictions in Japan and rising cases in Latin America will hamper the global economic recovery.

On Wall Street, the rose 0.9%, reversing two days of declines, to finish Wednesday’s session just 12 points below its record close.

“‘Buy the dip’ mentality appears to be back in equities,” Tapas Strickland, an analyst at National Australia Bank (OTC:), wrote in a client note.

Oil prices slipped for a third day on concerns that surging COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer, while a surprise build in U.S. stockpiles added to the negative tone.

fell 10 cents on Thursday to $61.25 per barrel and was down 10 cents to $65.22.

edged higher to $1,794.32 an ounce.

U.S. Treasury yields stayed depressed, with the yield on benchmark 10-year notes down 2 basis points at 1.5414% on Thursday, languishing near the lowest since March 12.

In currency markets, the dollar remained pinned near multi-week lows against major peers as U.S. yields stayed subdued.

The dollar stood at 108.04 yen, close to a seven-week low, while the euro was quoted at $1.2037, not far from its strongest since March 3.

The European Central Bank decides policy later on Thursday, with no change expected.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button