Stocks in Asia climbed with U.S. equity futures as earnings continued to roll in. The dollar extended this week’s declines.
Shares in Hong Kong, Shanghai and Sydney rose. Equities advanced in Seoul despite a warning from Samsung Electronics Co. that profit may fall in the second quarter as the pandemic hits demand. Wednesday’s gains pushed Asia-Pacific stocks up 20% from recent lows, set to join global peers in a bull market. Nasdaq futures climbed about 1.5% after Alphabet Inc. reported better-than-estimated sales. U.S. equities saw a volatile session Tuesday with megacap tech stocks retreating amid a slide in consumer confidence and as more companies withdrew earnings guidance. Japan is shut for a holiday and Treasuries won’t trade until the London open. Oil advanced.
Investors are in search of new catalysts to drive further gains in global equities following the 27% surge from the March lows. The Federal Reserve’s policy decision is due Wednesday, then the European Central Bank the next day, and earnings are still to come from some of the world’s biggest companies, among them Amazon.com Inc. and Microsoft Corp. At the same time, traders are monitoring coronavirus infection rates and the ongoing discussions of how to restart activity.
“We have some very extreme readings on the blow we’ve just suffered and markets are still bouncing around trying to get a reading on where we will be in the third and fourth quarter,” Christopher Smart, chief global strategist at Barings Investment Institute, said on Bloomberg TV. “That is very hard right now without knowing where the disease will be, and how quickly people will feel comfortable going back to work, going back to stores, between now and when there might be a vaccine.”
These are the main moves in markets: