Australia, Japan lead Asia-Pacific rally on rising hopes lockdowns may work against the coronavirus
- Hotspot areas – the US, Spain and Italy – saw declines in daily deaths over weekend
- Hang Seng climbs 2.2 per cent, with new economy stocks outperforming
Australia and Japan led a rally in Asia-Pacific markets Monday, after a decline in daily deaths in hotspots in the US and elsewhere offered some hope against the raging coronavirus pandemic and sent US futures soaring.
Australia’s ASX 200 closed up 4.3 per cent and Japan’s Nikkei 225 jumped 4.2 per cent. South Korea’s Kospi advanced 3.9 per cent while its tech-heavy Kosdaq increased 4.2 per cent. Meanwhile, Hong Kong’s Hang Seng Index gained 2.2 per cent, with new economy stocks like Ping An Good Doctor and Alibaba Health Information and Technology outperforming.
US equity futures soared more than 3.6 per cent.
Meanwhile, in another boost to sentiment, Russia and Saudi Arabia were “very, very close” to an oil deal to reduce production, Russia’s sovereign wealth fund chief told CNBC. Oil prices have plunged since the two major oil players set off a price war right at a time the virus had already dampened demand.
“More and more people have turned optimistic, as they believe [coronavirus] cases appear to be peaking in Europe and the US, and that OPEC and Russia are very close to a deal of a production halt,” said Alan Li, portfolio manager at Atta Capital.