Global Stocks Push Higher Despite China Tensions: Markets Wrap

(Bloomberg) -- Asian stocks mostly climbed with U.S. and European futures Thursday as investors weighed continued signs of economies reopening against the increase in Sino-American tensions over Hong Kong. The yen dipped with Treasuries.Australian equities saw the bulk of gains, with Japanese shares also climbing. South Korean stocks hit session highs after the country’s central bank cut rates to a record low. Hong Kong fluctuated after the Trump administration said it could no longer certify its political autonomy from China, a move that could have far-reaching consequences on its special trading status with the U.S. Earlier, the S&P 500 climbed to a 12-week high, holding above technical levels considered key by chart watchers. Chipmakers climbed after Micron Technologies forecast earnings that were ahead of estimates.Investors are closely watching the new U.S.-China friction -- including possible sanctions over Beijing’s crackdown in Hong Kong -- as global stocks push higher on hopes economies are beginning to recover after a deep downturn. Federal Reserve Bank of St. Louis President James Bullard said the American economy may already have bottomed and Australia’s central bank chief said that country’s downturn may not be as severe as first thought.“Eventually we will see a recovery but to be honest I think analysts are still way too optimistic about corporate profits,” David Kelly, chief global strategist at JPMorgan Asset Management, said on Bloomberg TV. “We are in for a much deeper profit slide than investors are expecting and that does make the stock market somewhat vulnerable.”China’s daily currency fixing was stronger than some had forecast, though the offshore yuan continues to test the weakest level on record amid speculation the government would be willing to permit a weaker currency in response to fresh punitive measures from the U.S.Oil fell below $32 a barrel after a U.S. industry report raised fresh concerns about excess supply.Here are some key events coming up:Thursday brings the U.S. jobless claims reading for the week ended May 23.Federal Reserve Chairman Jerome Powell participates in a virtual discussion on Friday.Euro-area data due Friday is forecast to show consumer inflation fell to 0.1% in May from 0.4% the previous month.These are the main moves in markets:StocksFutures on the S&P 500 Index added 0.4% 11:36 a.m. in Tokyo. The gauge rose 1.5% on Wednesday.Japan’s Topix index climbed 1.6%.Hong Kong’s Hang Seng lost 0.4%.Shanghai Composite rose 0.4%.South Korea’s Kospi index added 0.7%.Australia’s S&P/ASX 200 Index rose 2.2%.Euro Stoxx 50 futures gained 1.2%.CurrenciesThe yen was at 107.84 per dollar, down 0.1%.The offshore yuan slid 0.1% to 7.1816 per dollar.The euro bought $1.1019, up 0.1%.BondsThe yield on 10-year Treasuries edged up to 0.69%.Australia’s 10-year bond yield held at 0.88%.CommoditiesWest Texas Intermediate crude dipped 3.5% to $31.67 a barrel.Gold was at $1,713.79 an ounce, up 0.3%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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