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Asian markets look to follow Wall Street rally as oil surges

EconomyApr 02, 2020 08:15PM ET
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© Reuters. FILE PHOTO: Pedestrian wearing a face mask walks near an overpass with an electronic board showing stock information in Shanghai

By Herbert Lash

NEW YORK (Reuters) - Asian markets on Friday looked to latch onto Wall Street's overnight gains after crude prices notched their biggest one-day surge on record, helping offset concerns about the depth of a global recession.

Despite the rally in stocks, investors still sought the safety of the U.S. dollar and government bonds as an unprecedented number of Americans - 6.6 million - filed jobless claims due to coronavirus-induced lockdowns, as economic concerns stayed front and center.

U.S. stocks rallied after U.S. President Donald Trump said he expects Russia and Saudi Arabia to announce an oil production cut of up to 10 million to 15 million barrels as the two countries signaled willingness to make a deal.

Saudi Arabia said it would call an emergency meeting of the Organization of the Petroleum Exporting Countries, Saudi state media reported.

Nikkei futures edged slightly higher, above the index's cash close on Thursday, and Australia's benchmark was up 1.5% in early trade. Hong Kong futures were negative.

E-Mini futures for the S&P 500 fell 0.04%. A gauge of stocks across the globe advanced 1.24% overnight, adding to modest gains earlier in Europe.

On Wall Street, the Dow Jones Industrial Average rose 2.2%, the S&P 500 gained 2.3% and the Nasdaq Composite added 1.7%.

Projections released by the U.S. Congressional Budget Office showed U.S. gross domestic product will decline by more than 7% in the second quarter as the coronavirus crisis takes hold.

Interest rates on 10-year Treasuries will likely be below 1% during the quarter as well, the CBO said.

Investors sought the perceived safety of government bonds. Benchmark U.S. 10-year notes fell in price to last yield 0.6111%.

Global coronavirus cases surpassed 1 million on Thursday with more than 52,000 deaths as the pandemic further exploded in the United States and the death toll climbed in Spain and Italy, according to a Reuters tally.

The dollar gained for a second straight day against a basket of currencies as investors continued to take shelter in the U.S. currency.

The dollar index rose 0.672%, while the Japanese yen weakened 0.21% versus the greenback at 108.15 per dollar.

Gold prices jumped as record high U.S. jobless claims intensified fears of the coming economic slowdown and drove investors toward the safe-haven metal.

U.S. gold futures settled 2.9% higher at $1,637.70 an ounce.

Highly rated U.S. corporate bond issuers raised a record $110.502 billion this week, according to Refinitiv IFR data, as firms borrowed cash in fear the coronavirus crisis may soon limit their access to capital markets.

Brent futures rose $5.20, or 21.0%, to settle at $29.94 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $5.01, or 24.7%, to settle at $25.32.

Despite the record surge on Thursday, oil prices have still lost more than half their value this year.

Asian markets look to follow Wall Street rally as oil surges
 

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Comments (4)
zuma musa
zuma musa Apr 29, 2020 8:23AM ET
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US jobless instensified fear of the coming economic slowdown.  Why?  This is by virtue of many countries practise lockdowns.  As many countries practise lockdowns, many small and medium companies cannot survive due to they still need to pay staff salaries, office rental, machinery wear and tear expenses, etc., despite their sales drop as a result of they cannot sell their goods to local regions or to overseas companies.  As small and medium companies' sales drop and cannot meet the monthly expenses, they close down one by one.  As many countries have ended their lockdowns, those companies that still survive will remain to operate and that has prevented the further closing down of companies.  What if countries remain practising lockdowns till the end of the year, most likely many more companies cannot take it and many more will close down soon.  As more and more countries have ended lockdowns, those companies still exist can survive and this can cause the economy to improve.
Poppy Cheers
Poppy Cheers Apr 02, 2020 9:46PM ET
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what is WTI and Brent crude price,is it calculated including transport to London or where? I think Russia would not agree to any agreement so soon
jemin An
jemin An Apr 02, 2020 9:31PM ET
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U.S. market rallied by fake news from Trump. Kremlin officially talked THERE WERE NO CONVERSATION WITH SAUDI. That is something diplomatical expression, straight to say DON'T LIE TO ME, MR TRUMP.
db cooper
db cooper Apr 02, 2020 8:44PM ET
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I regret to say Asian markets will perhaps be disappointed as WTI crude oil continues to fall overnight............
 
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