Asia shares surge to 3-month high despite risks
Asian shares surged to a near three-month peak on Wednesday amid hopes of economic stimulus and easing lockdowns. These factors outweighed investors’ caution over the pandemic and the ongoing U.S. protests.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3%, its fifth day of gains.
Japan’s Nikkei was up 1.2%, its highest level since February. China’s CSI300 gained 0.4% to a 12-week high.
S&P 500 e-mini futures rose 0.2% in early trade.
MSCI’s world stocks were up 0.3%, boosting nearly 36% from its record low on March 23.
In China, service sector activity has recovered to levels seen before the pandemic. However, analysts cautioned traders on the price rallies as several risks still threaten global economic recovery. The U.S.-China tensions and growing anti-racism protests in the United States were among the risks.
The 30-year U.S. Treasuries yield was up 1.532%, its highest since March.
Oil prices rose over 1% to a near three-month peak. WTI crude futures were up 1.9% to $37.50, while Brent surged 1.2% to $40.04 per barrel.
Gold was flat at $1,728 an ounce.