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GLOBAL MARKETS-Asian shares rise as investors pin hopes on pandemic peaking

Published 09/04/2020, 07:25
Updated 09/04/2020, 07:30
© Reuters.
US500
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AXJO
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JP225
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SBUX
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DE30
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LCO
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UK100
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ESZ24
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CL
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EU50
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MIAPJ0000PUS
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CSI300
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Investors look for signs pandemic is slowing
* Oil firm before OPEC+ meeting
* Sterling resilient after PM Johnson hospitalisation

By Stanley White and Chris Prentice
TOKYO/WASHINGTON, April 9 (Reuters) - Asian shares rose on
Thursday on hopes the COVID-19 pandemic is nearing a peak and
that governments would roll out more stimulus measures to
support their economies, while expectations of a deal to cut oil
production bolstered crude prices.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.9%, following a strong Wall Street
close. U.S. stock futures ESc1 were flat after bouncing in and
out of positive territory.
Shares in China .CSI300 , where the novel coronavirus first
emerged late last year, rose 0.42%. Australian shares .AXJO
were up 2.54%.
The improved mood is seen extending to Europe, where Euro
Stoxx 50 futures STXEc1 were up 0.85%, German DAX futures
FDXc1 rose 1.04%, and FTSE futures FFIc1 gained 1.08%.
Oil prices LCOc1 extended gains on hopes major producers
will cut output at a meeting later in the day in response to a
collapse in global oil demand. New York Governor Andrew Cuomo said the state's efforts at
social distancing were working in getting the virus under
control in one of the biggest hot spots in the United States.
U.S. President Donald Trump said he would like to reopen the
U.S. economy with a "big bang" but that the death toll from the
coronavirus first needs to be heading down. "There are signs that infections are peaking, which is
leading to the change in market sentiment," said Masayuki
Kichikawa, chief macro strategist at Sumitomo Mitsui Asset
Management Co in Tokyo.
"We still need to be very careful, because this is not
purely an economic problem. It's more like a natural disaster
and, therefore, harder to predict."
The S&P 500 .SPX gained 3.41% on Wednesday, helped by
hopes the pandemic was nearing its peak.
The Trump administration has asked lawmakers for an
additional $250 billion in aid for small U.S. businesses.
However, congressional efforts were stalling as Democrats
held out for similar amounts of aid for hospitals and local
governments. While Trump's optimism helped stoke Wall Street's rally,
recent U.S. data and forecasts are only now beginning to reflect
the economic damage.
McDonald's Corp MCD.N said global comparable sales tumbled
22.2% in March, while Starbucks Corp SBUX.O forecast a 47%
drop in second-quarter earnings. Japan's Nikkei stock index .N225 bucked the regional trend
and fell 0.46% as coronavirus infections in the country rose,
while markets were also jittery following the government's
declaration of a state of emergency for Tokyo and other urban
areas. The coronavirus has spread rapidly across the globe in the
past month or so, infecting more than 1.4 million people and
causing more than 87,500 deaths, according to a Reuters tally.

Wuhan, the Chinese city where the new virus emerged late
last year, ended its more-than two-month lockdown on Wednesday,
but many officials across the world remain nervous about the
pace of infections and deaths. The euro nursed losses against the dollar EUR=D3 and the
pound EURGP=D3 after euro zone finance ministers failed on
Wednesday to agree on more support for their coronavirus-hit
economies. The pandemic is still infecting and killing large numbers of
people across Europe and there is still no sign that the peak of
the region's outbreak has been reached, the EU's disease
monitoring agency said. Sterling GBP=D3 held onto gains versus the dollar. Helping
confidence was news British Prime Minister Boris Johnson's
condition is improving and he is able to sit up in bed and
engage with clinical staff.
Johnson, who was battling COVID-19 symptoms since late
March, was taken to intensive care two days ago after his
condition deteriorated. U.S. crude CLc1 rose 3.07% to $25.86 a barrel. Brent crude
LCOc1 rose 1.98% to $33.49 per barrel.
The Organization of the Petroleum Exporting Countries (OPEC)
and allies including Russia - a group known as OPEC+ - are set
to convene a video conference meeting on Thursday.
Hopes of an agreement to cut between 10 million and 15
million barrels per day (bpd) rose after media reports suggested
Russia was ready to reduce its output by 1.6 million bpd. O/R


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Tracking the spread of the novel coronavirus https://graphics.reuters.com/CHINA-HEALTH-MAP/0100B59S39E/index.html
Global stock markets shaking off the virus IMAGE https://reut.rs/3bVMQ0k
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