GLOBAL MARKETS-Asian shares extend rally, U.S. earnings to test optimism

GLOBAL MARKETS-Asian shares extend rally, U.S. earnings to test optimism

Reuters  | Jul 13, 2020 11:20

GLOBAL MARKETS-Asian shares extend rally, U.S. earnings to test optimism

* Asian stock markets :
* Asia -ex Japan share index near five-month top
* Markets brace for U.S. earnings season
* Investors upbeat even as coronavirus cases surge in U.S.

By Wayne Cole
SYDNEY, July 13 (Reuters) - Asian shares crept toward
five-month peaks on Monday as investors wagered the U.S.
earnings season would see most companies beat forecasts given
expectations had been lowered so far by coronavirus lockdowns.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS added 0.15%, having climbed sharply last week on
the back of surging Chinese stocks, which added another 1% on
Monday. .CSI300 .
Japan's Nikkei .N225 gained 1.7% and South Korea .KS11
1.2%. E-Mini futures for the S&P 500 ESc1 rose 0.5% even as
some U.S. states reported record new cases of COVID-19, a
divergence that shows no sign of stopping.
EUROSTOXX 50 futures STXEc1 added 1.1% and FTSE futures
FFIc1 0.8%.
"Ongoing grim U.S. COVID-19 infection news continues to be
summarily ignored in favour of ongoing optimism regarding the
time-line for the discovery and rapid roll-out of an effective
vaccine and/or more policy support for asset prices and the U.S.
economy," said Ray Attrill, head of FX strategy at NAB.
"JP Morgan, Citigroup, and Wells Fargo all report on Tuesday
and there's a view that the bar has been set pretty low for them
to report the almost obligatory 'better than expected' results -
the absence of forward guidance from many firms
Wednesday sees Goldman Sachs and Bank of NY report, while
Thursday has Netflix and Morgan Stanley.
While bank shares rose sharply on Friday they have been
badly lagging technology stocks, with analysts at Bank of
America noting tech outperformance in the past six months was
greatest since the 1999 tech bubble and the 2008 global
financial crisis.
If the S&P 500 .SPX was just "tech, health care, Amazon,
Google" the index would now be 4,173, they wrote in a note, way
above the current level of 3,185. If made up of everything else,
it would be 2,924.
"Central banks are crushing rate expectations, forcing
risk-taking in credit markets," they added.
Yields on U.S. 10-year notes US10YT=RR came close to
record lows last week at 0.569% and were last at 0.63%.
Super-low rates have in turn been a boon for non-yielding
gold which hit a near nine-year high after five straight weeks
of gains. The metal was last at $1,803 an ounce XAU= , just off
a $1,817.17 top.
The hunt for yield has tended to benefit emerging market
currencies and those leveraged to commodities such as the
Australian dollar, while weighing on the U.S dollar.
Against a basket of currencies, the dollar was off at 96.585
=USD on Monday and not far from the June trough of 95.714. The
dollar was a fraction softer on the yen at 106.88 JPY= , while
the euro held at $1.1309 EUR= .
Oil prices eased in early trade, although that followed a
sharp rise on Friday when the International Energy Agency (IEA)
bumped up its 2020 demand forecast. O/R
Brent crude LCOc1 futures dipped 41 cents to $42.83 a
barrel, while U.S. crude CLc1 lost 40 cents to $40.15.

Asia stock markets
Asia-Pacific valuations

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.