Asian shares advance, tracking Wall Street tech rally
TOKYO (AP) - Asian stocks were mostly higher on Tuesday, recovering from some early losses as regional markets rallied late on Wall Street, led by technology stocks.
Japan's Nikkei 225 benchmark rose 0.8% to 22,621.84. The Hang Seng Index in Hong Kong rose by 0.9% to 24,728.76 and the South Korean Kospi by 0.6% to 2,139.34. The Australian S & P / ASX 200 rose 0.1% to 5,950.50, while the Shanghai Composite rose 0.1% to 2,968.78.
The shares fell in Singapore and Jakarta, but rose in Taiwan.
"It's back to normal rules of procedure trying to figure out why stocks are so high!" Said AxiCorp's Stephen Innes in a comment. "You can put the resurgence of COVID-19 on the laundry list of things in the market." doesn't care about it, it seems. "
On Wall Street, the S&P 500 rose 0.6% to 3,117.86 after initially falling 0.6% after a weakness in overseas markets as the number of coronavirus infections worldwide exceeded 9 million. Investors are weighing the risks that could arise from increasing coronavirus cases in order to hope for an economic recovery. As a result, traders listed shares in technology companies that offer services online, a thriving source of trade during the outbreak.
"In an environment where WHO announced a record-breaking increase in worldwide Covid 19 cases only on Sunday, the mood with the switch can certainly change very quickly," said Jingyi Pan, market strategist at IG in Singapore, a report .
Overnight, director of the World Health Organization, Tedros Adhanom Ghebreyesus, warned that the coronavirus pandemic is "still accelerating" worldwide. He found that the last 1 million cases of the virus had been reported in the past eight days.
Asian markets initially opened deeper, startled by reports from the White House trade advisor Peter Navarro, who indicated that the US trade agreement with China was in trouble.
However, Navarro said his comments had been taken out of context, and President Donald Trump tweeted that the deal with China, the basis for a ceasefire in a customs war on technology and other issues, has not yet been finalized. Trump tweeted: "The China Trade Deal is completely intact. Hopefully they will continue to meet the terms of the agreement! "
Investors prefer retailers and other companies that are willing to do well as more companies have been given permission to reopen. However, traders continue to hedge their bets by traditionally buying less risky assets like government bonds and gold, which have also risen. Bond yields were mixed.
The Dow Jones Industrial Average rose 0.6% to 26,024.96 after falling 203 points previously. The Nasdaq group, heavily weighted with technology stocks, rose by 1.1% to 10,056.47 and extended its winning streak to a seventh day.
Small company stocks, which lagged the broader market recovery that started in April, also saw solid gains, with the Russell 2000 index rising 1.1% to 1,433.53.
While recent US economic data has improved as business reopens, it may take years for the economy to fully recover. In contrast, it only took a few months for the stock market to recover to 9% of its record level.
David Kelly, chief global strategist at JPMorgan Funds, sees a separation between recent market gains and economic data. He says markets seem to diverge from fundamentals, which makes him "more suspicious of the markets than an economic barometer."
New data on US house sales on Monday showed that the virus outbreak continues to disrupt the US housing market. According to the National Association of Realtors, sales of previously inhabited homes fell 9.7% in May. The decline in May pushed sales to a seasonally adjusted annual rate of 3.91 million, the slowest pace since 2010. Nevertheless, the average home price rose 2.3% year over year, a sign that demand could pick up in the coming months .
Investors will get a broader view of the economic situation later this week when the government releases data on consumer spending, weekly unemployment claims, and durable goods orders. On Tuesday, the commercial department delivers new home sales for May.
The benchmark US crude oil price in electronic trading on the New York Mercantile Exchange remained unchanged at $ 40.46 a barrel. It rose 71 cents on Monday. The international standard Brent crude rose 1 cent to $ 43.08 a barrel.
The dollar rose from 106.90 yen late Monday to 107.17 Japanese yen. The euro was trading at $ 1.1267 versus $ 1.1262.
AP Business Writers Alex Veiga and Damian J. Troise contributed to this.
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