(Bloomberg) — Asian stocks advanced with U.S. and European equity futures after the daily reported death tolls in some of the world’s coronavirus epicenters dropped on Sunday.
Contracts on the S&P 500 Index climbed more than 3% at one point, and Japan’s benchmarks were up about 2%, snapping a five-day losing streak even as the country approaches a potential emergency declaration. Shares in Hong Kong were also higher, though to a lesser degree. The yen dropped along with Treasuries as haven demand receded. Crude oil prices slumped as uncertainty remains over a proposed meeting of supplier nations that is planned for April 9.
Chinese markets are closed for a holiday Monday. Elsewhere, the pound dipped as U.K. Prime Minister Boris Johnson was admitted to hospital for tests after suffering from the coronavirus for 10 days. Saudi Arabia, Russia and other large oil producers are racing to negotiate a deal to stem the commodity’s historic price crash.
In the latest developments on the health crisis, New York state fatalities fell for the first time, though President Donald Trump warned that a “very horrendous” phase in the pandemic is approaching. Italy had the fewest deaths in more than two weeks, while France reported the lowest number in five days and Spain’s tally fell for three days in a row.
“There is light at the end of the tunnel but it’s still a long tunnel,” Erik Nielsen, UniCredit SpA’s London-based chief economist, wrote in a note Sunday.
Stocks ended down last week, taking back some of the prior week’s rally, after a plunge in U.S. hiring hinted at the extent of the pandemic’s toll on the world’s biggest economy. That slump in payrolls only took in the damage from early March, with April’s figure expected to show more of the hit.
“We are still optimistic that the administration will be able to get this virus under control and reopen the economy by the end of April, early May,” Lindsey Piegza, chief economist at Stifel Nicolaus & Co., said on Bloomberg TV. “If that does occur, it’s likely that we’re able to control the downturn from a depressionary scenario into a recessionary scenario.”
These are the main moves in markets:
Futures on the S&P 500 rose 3.1% as of 11:52 a.m. in Tokyo. The S&P 500 fell 1.5% on Friday.Topix index rose 1.8%.Hong Kong’s Hang Seng added 0.7%.Australia’s S&P/ASX 200 Index climbed 3.1%.Kospi index added 2.1%.Euro Stoxx 50 futures advanced 2.5%.
The yen lost 0.4% to 108.93 per dollar.The euro bought $1.0811, up 0.1%.The offshore yuan was flat at 7.1144 per dollar.The pound slid 0.3% to $1.2236.
The yield on 10-year Treasuries rose three basis points to 0.63%.Australia’s 10-year yield remained at 0.77%.
West Texas crude dropped 4.7% to $27.01 a barrel.Gold was down 0.1% to $1,619.24 an ounce.
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