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GLOBAL MARKETS-Asia's share markets edge up on recovery signals

Published 04/05/2021, 02:53
Updated 04/05/2021, 02:54
© Reuters.
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* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

By Scott Murdoch
HONG KONG, May 4 (Reuters) - Asia's share markets were
mostly higher Tuesday as regional equity investors looked to
signs of recovery from the coronavirus pandemic as major
economies around the world reopen.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up by 0.05% on the back of a positive lead
from Wall Street overnight.
Hong Kong's Hang Seng Index .HSI opened 0.3% higher at
28,441.95.
Australia's S&P/ASX200 .AXJO edged up 0.22% to 7,044.3 as
the Reserve Bank of Australia is expected to keep the official
cash rate on hold at 0.1% for May as it waits for further signs
of the domestic economy's rebound from the pandemic led
downturn.
A statement following the decision at 0430 GMT will be
monitored for indications whether the unprecedented quantitative
easing programme there could start to be tapered.
On Monday, Federal Reserve chairman Jerome Powell said the
U.S. economy was doing better but was "not out of the woods yet"
as the central bank prepared to release a study on the disparate
effects of the pandemic on the country's different demographics.
"The economy is reopening, bringing stronger economic
activity and job creation," Powell said in remarks prepared for
delivery at a conference of the National Community Reinvestment
Coalition.
"That is the high-level perspective - let's call it the
30,000-foot view - and from that vantage point, we see
improvement. But we should also take a look at what is happening
at street level."
Japan and mainland China's markets remained closed on
Tuesday for holidays dampening trading volumes across the
region.
The brighter tone in Asian markets came after a stronger
session on Wall Street.
The Dow Jones Industrial Average .DJI rose 0.7% to end at
34,113.23 points, while the S&P 500 .SPX gained 0.27% to
4,192.66 with most of the gains concentrated in industrial and
commodity shares.
The Nasdaq Composite dropped 0.48%, to 13,895.12 as
technology stocks lagged stocks investors saw as beneficiaries
of a pandemic recovery.
Energy stocks also gained on the back of higher oil prices.
In the Asian session, Brent crude LCOc1 was trading up
0.15% at $67.66 while U.S. light crude CLc1 was 0.12% higher
at $64.56.
"Crude oil gained (in U.S. trading) as easing restrictions
in the U.S. and Europe raise hope of stronger demand. The
European Union is planning to ease restrictions on vaccinated
travellers over the summer," ANZ economists said in a note to
clients.
"This comes as several countries emerge from lockdowns amid
a fall in new infections of the coronavirus."
U.S. Treasury yields fell on Monday after data showed
manufacturing activity growth slowed in April amid supply chain
challenges and rising demand fueled by the COVID-19 vaccine
rollout and fiscal stimulus.
Focus is now expected to turn to services data due on
Wednesday and non-farm payrolls numbers on Friday.
The benchmark 10-year yield US10YT=RR , which hit a session
low of 1.578%, was last down 3 basis points at 1.6011%, holding
well below a 14-month high of 1.776% reached on March 30.


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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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