NEW YORK, July 16 — Asian shares look set to continue a march upwards as optimism over a coronavirus vaccine carry weight over the ongoing spread of the disease and simmering US-China tensions.
Australian S&P/ASX 200 futures rose 0.37 per cent in early trading. Japan’s Nikkei 225 futures added 0.07 per cent, and Hong Kong’s Hang Seng index futures rose 0.25 per cent.
E-mini futures for the S&P 500 rose 0.19 per cent.
MSCI’s gauge of stocks across the globe closed up 1.16 per cent.
A run of promising news in efforts to develop a Covid-19 vaccine ran through US markets. An experimental vaccine produced by biotech startup Moderna Inc showed it was safe and provoked immune responses in volunteers, an early — stage trial showed on Tuesday.
There were also reports of pending positive news on vaccine work from the University of Oxford.
“US equities continued to defy all gravity as investor optimism revels amid the progress in developing a vaccine which continues to reign supreme,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in an analyst note.
In the United States, stocks closed sharply higher on the vaccine news, buttressed by a strong quarterly report from Goldman Sachs.
A new report from the Federal Reserve also found US businesses saw an uptick in activity as states relaxed restrictions, although uncertainty about the outlook remained with coronavirus cases spreading.
The Dow Jones Industrial Average rose 0.85 per cent, while the S&P 500 gained 0.91 per cent and the Nasdaq Composite grew 0.59 per cent.
Oil prices rose thanks to a drop in US crude inventories, but gains were limited by plans from Opec and its allies to ease supply curbs. Brent crude settled up 89 cents, or 2.1 per cent, at US$43.79 (RM186.76) a barrel.
Investors appeared willing to take on more risk in currency markets, pushing the safe-haven US dollar to a one-month low. The dollar index fell 0.105 per cent, dropping below 96 for the first time since June.
The risk appetite was also evident as US Treasury yields rose and the yield curve steepened, indicating a wider spread between long — and short-term interest rates.
Investors will be watching for new economic data out of China, which will release figures on second-quarter GDP data today, along with June factory output, retail sales and fixed-asset investment. A Reuters poll found analysts expect China to report 2.5 per cent economic growth, reversing a 6.8 per cent first-quarter decline driven by the pandemic. — Reuters
