(Bloomberg) — Asian stocks saw modest gains on low volume as investors mulled further signs of positive developments in the global fight against the coronavirus. The yen was steady as traders awaited a key Bank of Japan policy meeting.
Shares in Hong Kong, South Korea and Japan rose after U.S. stocks ended firmer on Friday. U.S. futures fluctuated and Chinese stocks were little changed. The Australian dollar outperformed, while other risk currencies tucked higher. Treasury yields were little changed. Coronavirus deaths slowed the most in more than a month in Spain, Italy and France while fatalities reported in the U.K. and New York were the lowest since the end of March. Oil retreated.
The Federal Reserve joins the BOJ and the European Central Bank announcing policy decisions this week as the battle against the pandemic continues with some countries proceeding on steps to relax lockdown measures. Several major economies will release GDP numbers, while corporate earnings will keep flooding in, including from Amazon.com Inc., Barclays Plc and Samsung Electronics Co.
“This coming week will be huge from a macro data perspective and the extent to which the global economy has been floored by Covid-19,” said Simon Ballard, chief economist at First Abu Dhabi Bank. “Until we are clearly past the peak of the outbreak, on a global scale, and can feasibly deem the pathogen to be contained and there to be no meaningful risk of a second wave of infection, we believe a defensive investment strategy will remain the most appropriate.”
Meantime, New York Governor Andrew Cuomo sketched out a phased-in reopening that begins with construction and manufacturing. That could start as soon as May 15, he said, probably upstate before the New York City area. Italy and Spain, Europe’s two hardest-hit countries, along with neighboring France, all signaled tentative moves to open up their economies.
These are the main moves in markets:
Stocks
Futures on the S&P 500 rose 0.1% as of 10:40 a.m. in Tokyo. The gauge added 1.4% on Friday.Topix index advanced 0.9%.Australia’s S&P/ASX 200 Index gained 0.4%.South Korea’s Kospi index rose 1.1%.Hong Kong’s Hang Seng Index added 0.9 %.Shanghai Composite was little changed.
Currencies
The yen was little changed at 107.57 per dollar.The offshore yuan traded at 7.0808 per dollar, up 0.1%.The euro bought $1.0825, little changed.The Aussie gained 0.9% to 64.31 U.S. cents.
Bonds
The yield on 10-year Treasuries held at 0.61%.
Commodities
West Texas Intermediate crude slipped 8.5% to $15.50 a barrel.Gold was at $1,722 an ounce, down 0.4%.
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