Stocks Climb on Vaccine Update; Dollar Slips: Markets Wrap

(Bloomberg) -- Most Asian stocks climbed along with U.S. and European equity futures on Wednesday amid optimism that progress is being made in developing a defense against the coronavirus. The dollar edged lower.Shares in Japan, India, South Korea and Australia gained and S&P 500 contracts rose as Moderna Inc.’s Covid-19 vaccine produced antibodies in all patients tested in an initial safety trial. Shares in Hong Kong underperformed, while those in Shanghai fell amid signs policy makers are uneasy over the pace of recent gains. U.S. shares closed higher Tuesday in a volatile session, with banks mixed after JPMorgan Chase & Co. reported strong trading results, while Wells Fargo & Co. tumbled. Treasury yields rose.The yen was steady after the Bank of Japan kept its main policy settings unchanged and warned risks to the economy were to the downside. Governor Haruhiko Kuroda will speak at a press briefing later Wednesday.Risk asset volatility remains high, with equities largely treading water over the past month as worries about new virus cases are offset by optimism over stimulus spending and the economic recovery. Still, as new outbreaks appear around the world, officials are putting stricter measures in place to control the spread.“It’s this tug-of-war between the forward-looking assumption around a vaccine and treatment versus what is happening today as it relates to cases, the mortality rate and, more broadly, the spread,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management.Meantime, President Donald Trump said he issued an order to end Hong Kong’s special status with the U.S. and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in Hong Kong, the latest escalation in tensions between the world’s largest economies.Elsewhere, oil extended gains following a report showing U.S. crude stockpiles declined last week.Here are some key events coming up:The EIA crude oil inventory report is due Wednesday.China releases second-quarter GDP on Thursday as well as key economic indicators for June.The European Central Bank meets to set monetary policy on Thursday, with President Christine Lagarde holding a virtual press conference afterward.These are some of the main moves in markets:StocksFutures on the S&P 500 added 0.8% as of 5:30 a.m. in London. The index rose 1.3% on Tuesday.Japan’s Topix index gained 1.3%.Hong Kong’s Hang Seng slid 0.5%.The Shanghai Composite fell 1.4%.South Korea’s Kospi index climbed 0.6%.Australia’s S&P/ASX 200 Index gained 1.5%.Euro Stoxx 50 futures advanced 1.3%.CurrenciesThe yen was at 107.25 per dollar.The offshore yuan traded at 7.0016 per dollar, up 0.1%.The Bloomberg Dollar Spot Index fell 0.1%.The euro bought $1.1398.BondsThe yield on 10-year Treasuries rose one basis point to 0.63%.Australia’s 10-year yield was at 0.89%.CommoditiesWest Texas Intermediate crude advanced 0.5% to $40.50 a barrel.Gold was at $1,807.39 an ounce, little changed.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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