GLOBAL MARKETS-Asia stocks set to rise on upbeat data, focus on China PMI

By Imani Moise
NEW YORK, June 29 (Reuters) - Asian markets were poised to
follow Wall Street's firm lead on Tuesday as the sentiment boost
from upbeat U.S. data outweighed the threat of rising COVID-19
infections in the world's largest economy.
Investors cheered strong U.S. housing data that showed a
bounce back in home sales, and are anticipating positive jobs
data later this week as the U.S. jobs numbers are expected to
tick up as people head back to work. "Overnight moves in markets were not large but one does get
the distinct impression that markets have got it both ways –
with equities rallying on rebounding data and bonds rallying on
dismal COVID-19 news," said ANZ Research analyst Rahul Khare.
Australian S&P/ASX 200 futures YAPcm1 rose 1.15% while
Japan's Nikkei 225 futures NKc1 ticked up 0.11%. Hong Kong's
Hang Seng index futures .HSIc1 climbed 0.62%.
In Asia, investor focus will be on China's official
purchasing managers' index (PMI), which is expected to show
factory activity grew for a fourth straight month in June albeit
at a slower pace, raising concerns the recovery in the world's
second-largest economy may be stalling. A recent resurgence in coronavirus infections had caused
some investors to doubt the strength of a rebound in global
economic activity.
However, gains in equities, long-term yields, and oil
futures suggest the majority of investors remain optimistic
about the long-term prospects for growth.
Confirmed COVID-19 cases worldwide rose past 10 million and
deaths surpassed 500,000 on over the weekend. The bulk of new
cases were reported in the United States and Latin America,
stoking fears that the outbreak could stall economic recoveries
just as lockdowns begin to ease.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
0.72% during Monday trading fueled by gains on Wall Street. On
Monday, the Dow Jones Industrial Average .DJI rose 2.32%, the
S&P 500 .SPX gained 1.47% and the Nasdaq Composite .IXIC
added 1.2%.
U.S. Treasuries were little changed after Monday trading as
the intervention by the Federal Reserve Bank kept yields stable.
In currency markets, the dollar held onto gains against the
yen JPY= and the Swiss franc CHF= as the recent increase in
coronavirus cases supported safe-haven demand for the greenback.
FRX/
China's yuan CNH=D3 held steady at 7.0752 per dollar in
the offshore market as traders braced for China's PMI.
In oil markets, Brent crude contracts were unchanged at
$41.71 per barrel. O/R

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