Global stocks rise as investors look ahead to week's data
BEIJING (AP) — Global stock markets rose Monday as investors shrugged off worries about rising coronavirus infections in the United States, Australia and some other countries.
London and Frankfurt opened higher, while Shanghai, Tokyo, Hong Kong and Southeast Asia advanced. Wall Street futures also rose.
Markets followed Wall Street higher last week after unexpectedly strong U.S. jobs data despite some American states reporting record new coronavirus infections.
The Australian state of Victoria prepared to close its border with neighboring New South Wales late Tuesday after reporting a daily high in new cases. Spain suspended access to a northern county due to fears of an outbreak.
“Asia has shrugged off the COVID-19 clouds that dominated the weekend press,” Jeffrey Halley of OANDA said in a report.
In early trading, the FTSE 100 in London rose 2.1% to 6,284.58 and Frankfurt's DAX added 1.9% to 12,770.30. The CAC 40 in France advanced 1.8% to 5,098.66.
On Wall Street, the future for the benchmark S&P 500 index was up 1.3% and that for the Dow Jones Industrial Average advanced 1.6%.
The S&P 500 ended a shortened last week up 4% before closing Thursday for a three-day holiday weekend. The Nasdaq composite climbed 0.5% to a new record. The Dow gained 0.4%.
In Asia, the Shanghai Composite Index rose 5.7% to 3,332.88 and the Nikkei 225 in Tokyo gained 1.8% to 22,714.44. The Hang Seng in Hong Kong added 3.8% to 26,339.16.
The Kospi in Seoul rose 1.6% to 2,187.93 while Sydney's S&P-ASX 200 lost 0.7% to 6,014.60. India's Sensex gained 1.4% to 36,531.56 and New Zealand, Singapore and Jakarta also gained.
Investors are looking ahead to interest rate decisions in Australia and Malaysia. The Reserve Bank of Australia is expected to keep its benchmark rate at a record low of 0.25% while forecasters expect another cut from Bank Negara Malaysia.
Markets also are watching an election in Singapore and possible unrest in Hong Kong over a security law.
Share prices have risen as some countries ease anti-virus measures and reopened businesses. Forecasters warn the surge might be too early to be sustained by uncertain economic conditions.
Whether the rally can be sustained “is hugely dependent on how markets react if improving data stabilizes or goes into reverse,” said Stephen Innes of AxiCorp in a report.
U.S. shares have rallied despite a surge in new cases in the populous U.S. states of Florida, Texas and California. That has prompted some governors to halt reopening of businesses or to order others to re-close.
In energy markets, benchmark U.S. crude gained 24 cents to $40.91 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose 71 cents in London to $43.51 per barrel.
The dollar gained to 107.58 yen from Friday's 107.52. The euro gained to $1.1289 from $1.1243.