Stocks rally as global recovery hopes outweigh U.S.-China tensions

Asian stocks rose on Tuesday as hopes of a global recovery from the COVID-19 pandemic outweighed the fears of simmering U.S.-China tensions and economic damage.

However, gains were held down after U.S. President Donald Trump vowed to use force in an attempt to end violent protests in America. The announcement led Wall Street stock futures into negative territory in Asia.

MSCI’s broadest index of Asia-Pacific Shares outside Japan gained 0.41% on Tuesday, continuing its best performance in two months in the previous day.

European stocks kicked off strong for the month of June with EUROSTOXX futures gaining 0.71%. Meanwhile, FTSE futures gained 0.52%, and Germany’s DAX futures climbed by 0.59% during an afternoon session in Asia.