GLOBAL MARKETS-Asian stocks set to track U.S. gains but Hong Kong jitters weigh

GLOBAL MARKETS-Asian stocks set to track U.S. gains but Hong Kong jitters weigh

Reuters  | Jul 02, 2020 08:00

GLOBAL MARKETS-Asian stocks set to track U.S. gains but Hong Kong jitters weigh

By Imani Moise
NEW YORK, July 1 (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 EScv1 edged 0.06% higher,
while Australian S&P/ASX 200 futures YAPcm1 climbed 0.71% and
Japan's Nikkei 225 futures JNIc1 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.
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 .HIS HSIc1 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 .MIWD00000PU gained
0.45% and the S&P 500 .SPX 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 LCOc1 rose 76 cents, or 1.8%, to settle at
$42.03 a barrel. U.S. crude CLc1 rose 55 cents, or 1.4%, to
settle at $39.82 a barrel.
The improved sentiment weighed on the safehaven greenback
with the dollar index =USD down 0.265% and the euro EUR= up
0.03% to $1.1253.
The Japanese yen strengthened 0.05% to 107.42 per dollar,
while sterling GBP= was last trading at $1.2477, up 0.06% on
the day.
U.S. gold futures GCcv1 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 US10YT=RR yield was last up 2.9
basis points at 0.6824% on Wednesday.

Global assets
Global currencies vs. dollar
Emerging markets
MSCI All Country Wolrd Index Market Cap

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