(Corrects US crude price rise in second paragraph to $1.38 not
1.38%)
* Asian stocks track late U.S. rally
* Optimism about reopening of economies returns
* Oil maintains momentum
* Mainland China, Japan markets closed for holidays
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Alun John and David Henry
HONG KONG/NEW YORK, May 5 (Reuters) - Asian stocks rose on
Tuesday, tracking a late Wall Street rally as governments eased
coronavirus lockdowns while oil extended gains on expectations
fuel demand would begin to pick up.
Brent crude LCOc1 rose 4.3% to $28.37 a barrel, up for a
sixth straight day, and U.S. crude CLc1 rose $1.38 to $21.77 a
barrel, as countries began loosening coronavirus restrictions
and crude supply cuts took effect. "The market continues to price in the idea that things are
improving," said Gene McGillian, vice president of market
research at Tradition Energy in Stamford, Connecticut.
In reduced trade, with China, Japan and South Korea on
holiday, Australia's ASX 200 .AXJO rose 1.26% and Hong Kong's
Hang Seng .HSI climbed 0.66%.
U.S. stock futures ESc1 rose 0.75%.
The rally followed late U.S. gains with the S&P 500 .SPX
ending up 0.42%, driven by technology names including Microsoft
MSFT.O , Apple AAPL.O and Amazon AMZN.O .
Their strength overcame drops in airline shares of between
5% to 8% after legendary investor Warren Buffett said his
Berkshire Hathaway BRKa.N had sold its carrier holdings.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.56%.
The upturn came on more optimistic statements from the
governors of California and New York for reopening businesses.
Andrew Cuomo of New York on Monday outlined a phased reopening
in the U.S. state hardest hit by the COVID-19 pandemic.
Analysts at Commonwealth Bank of Australia said the
structure of the oil price rises, with bigger gains in
nearer-dated contracts, suggested expectations of more
production cuts and a restoration of fuel demand later this
year.
They added, though, that this meant prices are highly
unlikely to recover the big falls since the start of the year.
The optimism about an economic recovery from the coronavirus
outbreak outweighed, at least briefly, the latest war of words
between China and the United States, which had dragged down
Asian and European shares on Monday.
An internal Chinese report warns that Beijing faces a rising
wave of worldwide hostility in the wake of the outbreak that
could tip relations with the United States into confrontation,
people familiar with the paper told Reuters. The dollar index =USD dropped 0.12%, as commodity
currencies inched up, with the Australian dollar =AUD rising
0.4% against the greenback.
Spot gold XAU= lost 0.2% to $1,699 an ounce.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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