Asian markets gain amid hopes for global recovery | Daily News

Asian markets gain amid hopes for global recovery

Asian stock markets mostly rose Wednesday as hopes for a global economic recovery rose after more governments eased anti-virus controls.

Hong Kong’s Hang Seng Index HK:HSI gained 0.7% while the Shanghai Composite CN:SHCOMP inched up 0.1% and the smaller-cap Shenzhen Composite CN:399106 advanced 0.7%. South Korea’s Kospi KR:180721 rose 1%, while benchmark indexes in Taiwan TW:Y9999 , Singapore SG:STI and Indonesia ID:JAKIDX were mixed. Markets in Japan were closed for a holiday.

Investors are increasingly optimistic as European countries and some U.S. states allow businesses to reopen despite warnings coronavirus infections still are rising in areas such as Brazil and economic recovery could be some way off.

On Wall Street, the benchmark S&P 500 index closed 0.9% after losing about half its early gains in a burst of afternoon selling. Technology and health care stocks accounted for much of the gains, which followed a strong showing in overseas markets.

Many analysts are skeptical of the rally. They say it is overdone given uncertainty about how long the recession will last. But the S&P 500 has recovered more than half its losses in a sell-off earlier in the year.

China, where the pandemic began in December, has allowed factories and some other businesses to reopen. France, Spain and other European governments are taking similar steps.

Expectations for stronger demand for oil as more businesses get the green light to open helped drive oil prices higher.

The S&P 500 US:SPX gained to 2,868.44. The Dow Jones Industrial Average US:DJIA rose 0.6% to 23,883.09. The Nasdaq US:COMP climbed 1.1% to 8,809.12.

A report released Tuesday showed the U.S. services industry shrank for the first time in a decade last month, but it caused barely a ripple in the stock or bond market.

In energy markets, benchmark U.S. crude US:CLM20 gained 21 cents to $24.77 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped 20.5% on Tuesday to settle at $24.56. Brent crude UK:BRNN20 , used to price international oils, added 19 cents to $31.16 per barrel in London. It gained 13.9% the previous session to close at $30.97. (



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