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GLOBAL MARKETS-Stocks rally on treatment hopes, currencies await ECB

Published 30/04/2020, 03:27
© Reuters.
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* Gilead's remdesivir shows promise in clinical trial
* Asian stocks hit 7-week high, but dollar rises vs AUD and
NZD
* ECB to hold press conference at 1330 GMT
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Tom Westbrook and Chibuike Oguh
SINGAPORE/NEW YORK, April 30 (Reuters) - Asian stocks rose
to a fresh seven-week high on Thursday, lifted by encouraging
early results from a COVID-19 treatment trial, though bonds and
currencies held cautious ranges ahead of a European Central Bank
meeting later in the day.
Anthony Fauci, the top U.S. infectious disease official,
said Gilead's GILD.O antiviral remdesivir will become the
standard of care for COVID-19 after early results from a trial
seemed to show it helped speed recovery. The news rallied Wall Street on Wednesday and lifted MSCI's
broadest index of Asia-Pacific shares, excluding Japan
.MIAPJ0000PUS , by 0.8% to its highest since mid-March.
Japan's Nikkei .N225 , returning from a holiday on
Wednesday, jumped 2.5% to a seven-week high as well, catching up
on the week's gains. More caution was evident in other asset
classes, with the U.S. dollar firm and U.S. futures steady.
"Any positive medical development is helpful," said Westpac
FX analyst Sean Callow.
"But no-one should be counting on a major breakthrough - the
key for markets is control of the spread of the virus," he said,
another front where there are positive signs.
"I think it is reasonable for markets to be less bearish
than they were in mid-March...but it's far too early for a
sustained rally in risk appetite, so we're probably due for a
little bit of a pullback."
Futures for Wall Street's S&P 500 ESc1 handed back early
gains to turn flat and the dollar held its own against the
risk-sensitive Antipodean currencies - rising for the first time
in a week against the Aussie and kiwi. AUD/
The yield on benchmark U.S. 10-year Treasuries US10YT=RR
stayed parked at 0.6237%, after the U.S. Federal Reserve left
interest rates near zero and gave no indication of lifting them
any time soon. Australia's ASX 200 .AXJO rose 1.4%. The Shanghai
Composite .SSEC rose 1%. Markets in Hong Kong and South Korea
were closed for public holidays.

OF MONEY AND MEDICINE
Markets have been excited by the prospect of a COVID-19
treatment because it may help countries emerge from lockdowns -
even though investors' hopes don't seem to take into account
regulatory and distribution difficulties should a treatment be
found.
Another focus has been the enormous fiscal and monetary
policy efforts from world governments and central banks to
staunch the economic damage from the pandemic.
That has the ECB under increasing pressure to deliver even
more support on Thursday - probably by expanding its bond buying
programme - as European leaders seem unable to agree on the
details of a rescue package. "The tone has been set for the ECB to 'do whatever it takes'
via its bond purchase programmes in terms of size, composition
and maturity," strategists at Singapore's DBS Bank said in a
note.
A press conference following the ECB meeting is due at 1330
GMT.
The euro EUR= was stuck at $1.08640 on Thursday, near the
top of a range where it has been pegged for two weeks, but
drifted lower as the dollar broadly firmed.
The greenback scraped off multi-week lows against the
Antipodean currencies and last sat at $0.6537 per Aussie
AUD=D3 and $0.6122 per kiwi NZD=D3 . FRX/
Elsewhere there was encouraging news from South Korea, which
on Thursday reported no new domestic coronavirus cases for the
first time since its Feb. 29 peak. However, comments from U.S. President Donald Trump accusing
China of seeking to defeat his re-election bid in November gave
cause for renewed caution. Gold XAU= was steady at $1,711.31 per ounce. GOL/
Brent crude LCOc1 and U.S. crude CLc1 futures each rose
more than 6% amid optimism that a storage squeeze is not as bad
as first feared, and that demand for fuel may soon return. O/R


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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Global bonds dashboard (DO NOT USE UNTIL UPDATE FOUND) http://tmsnrt.rs/2fPTds0
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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(Editing by Sam Holmes)

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