(Bloomberg) — Stocks in Asia pared losses and U.S. equity futures rose as investors showed tentative signs of edging back into riskier assets while continuing to assess the economic impact of efforts to contain the coronavirus.
Japan declined with more modest losses in Hong Kong, while equities rose in Korea and China. Australia underperformed. Futures on the S&P 500 advanced following another session of steep declines. In the latest virus developments, fatalities rose in France and Spain, while Italy and Germany moved to extend lockdown measures and Florida ordered people to stay home. New York Governor Andrew Cuomo said a model showed the Covid-19 outbreak may not peak in the state until the end of April.
“The incremental news on the virus in the last 24 to 48 hours has been disappointing,” John Porter, a fund manager at Mellon Investments Corp., said on Bloomberg TV. “The global economy has hit a wall, there’s a tremendous amount of uncertainty, and that’s contributing to the volatility in the markets and the downward trajectory we’ve seen the last few days.”
Last week’s rally in global equities is being threatened as companies move to slash dividends and more U.S. states enact severe restrictions on people movement. Germany is extending its nationwide lockdown for another two weeks, until April 19. The S&P 500’s decline accelerated on Wednesday after U.S. intelligence sources said China concealed the extent of the virus outbreak.
“The biggest economic hit on a monthly basis will likely be in the month of April,” Abby Joseph Cohen, advisory director and senior investment strategist at Goldman Sachs, said on Bloomberg TV. “This is going to be a rolling health crisis in the U.S.”
Elsewhere, West Texas oil jumped above $21 a barrel after President Donald Trump’s pledge to meet with feuding producers Saudi Arabia and Russia to support the market failed to bolster prices substantially.
These are the main moves in markets:
Stocks
S&P 500 futures rose 1.6% as of 11:53 a.m. in Tokyo. The S&P 500 fell 4.4%.Japan’s Topix index lost 1.1%.Hong Kong’s Hang Seng slid 0.3%.South Korea’s Kospi index rose 1.1%.Australia’s S&P/ASX 200 Index slid 2%.Euro Stoxx 50 futures were flat.
Currencies
The yen slid 0.3% to 107.46 per dollar.The offshore yuan traded at 7.1312 per dollar.The euro bought $1.0947, down 0.2%.
Bonds
The yield on 10-year Treasuries was steady at 0.58%.Australia’s 10-year bond yield added six basis points to 0.74%.
Commodities
West Texas crude rose 3.9% to $21.11 a barrel.Gold slipped 0.5% to $1,584.25 an ounce.
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