Japan’s Topix was up 1.8 percent this morning in Asia. Australia’s S&P/ASX 200 gained 0.7 percent and South Korea’s Kospi rose 1.3 percent. According to the FT, China’s CSI 300 of Shanghai- and Shenzhen-listed stocks added 0.2 per cent, while Hong Kong’s Hang Seng index was up 0.4 percent. Investors believe China’s economy could see growth in the second quarter, after GDP fell 6.8 percent in the first quarter.
This was the first annual drop in more than four decades,
Jingyi Pan, market strategist at IG, said Asian markets think their economies were handling the virus better than the west.
She said: “So far I think the market’s been shrugging off a bit of the Covid-19 concern.
“It is perhaps the only Asian economy for which we’re expecting growth.”
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5.24am update: Asian shares extend rally, US earnings to test optimism
Asian shares crept toward five-month peaks on Monday as investors wagered the US earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15 percent, having climbed sharply last week on the back of surging Chinese stocks, which added another 1 percent on Monday..
Japan’s Nikkei gained 1.7 percent and South Korea 1.2percent. E-Mini futures for the S&P 500 rose 0.5 percent even as some US states reported record new cases of COVID-19, a divergence that shows no sign of stopping.
EUROSTOXX 50 futures added 1.1percent and FTSE futures 0.8percent.