Asian shares set for bouncy session after Wall Street gains, weak dollar

In this news, we discuss the Asian shares set for bouncy session after Wall Street gains, weak dollar.

WASHINGTON (Reuters) – Asian stocks were set to experience a dynamic session on Thursday after US stocks posted a second straight quarter of gains and safe-haven assets, including the dollar, were mixed.

Global investors spent the session digesting the growing number of COVID-19 cases and a chaotic presidential debate in the United States, while collecting better-than-expected U.S. private employment data on the last day of a volatile quarter .

All three major clues jumped after U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin expressed hope for a breakthrough in partisan stimulus negotiations.

But they slashed their gains after Senate Majority Leader Mitch McConnell warned the parties were staying “very distant” in their talks.

“Between the US presidential elections in just over a month, spotty economic data and uncertainty over the impact of COVID-19 … we could see a stock market price drift through November 3” said Peter Kenny, founder of Kenny’s Commentary LLC and Strategic Board Solutions LLC in New York.

“Markets showed increased volatility in the third quarter – largely due to the COVID-19 pandemic. There were also uneven economic reports and data that fueled some degree of risk reduction as the quarter neared, much of which is now offset by facade.

Australian S & P / ASX 200 YAPcm1 futures rose 0.19%, while Japanese Nikkei 225 NKc1 futures rose 0.32%.

The Nikkei 225 .N225 index closed 1.5% lower at 23,185.12 on Wednesday. The futures contract is up 0.84% ​​from this close.

Hong Kong Hang Seng Index futures .HSI.HSIc1 rose 1.38%.

Market players were also digesting Tuesday’s controversial presidential debate in the United States, where President Donald Trump and Democratic challenger Joe Biden chatted and traded insults as they argued over the COVID-19 pandemic, care health and economy.

Better-than-expected gains from ADP’s private payroll survey helped push up US equities.

ECONOMIC EYE RE-OPENING

But some analysts say the election is not the main driver of the markets now, but rather the level of economic reopening.

U.S. markets rose on Mnuchin’s comments in the morning, but sold off when it later became apparent that Republicans and Democrats were unable to compromise on a stimulus package.

“Global investors may be pulling out of the United States as the election approaches and the political dysfunction in Washington is exposed, but they also need to consider that a weaker U.S. economy could portend a weaker global economy, which could lead investors to security. -haven assets ”later in 2020, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

On Wall Street, major indexes ended September with their first monthly declines since March, when mandatory closings hit the economy.

But of the top 11 sectors of the S&P 500, 10 closed the session, led by the .SPXHC of health and the .SPSY.

The indices also ended the quarter higher, with the S&P enjoying its biggest two-quarter winning streak since 2009 and the Nasdaq posting its biggest two-quarter gain since 2000.

Yet many potential challenges lie ahead for investors. Many are following the November presidential election closely, but the outcome may not be known immediately.

Bets on volatility through the end of 2020 in the currency and bond derivatives markets can be expected, some analysts say.

MARKETS

The Dow Jones Industrial Average .DJI rose 329.04 points, or 1.2%, to 27,781.7 on Wednesday, the S&P 500 .SPX gained 27.53 points, or 0.83%, to 3363 and the Nasdaq Composite .IXIC added 82.26 points, or 0.74%, to 11,167.51.

The MSCI indicator of stocks across the world .MIWD00000PUS gained 0.02%.

The largest MSCI index of Asia-Pacific stocks outside of Japan .MIAPJ0000PUS closed 0.1% higher.

The dollar = USD index fell 0.072%, the euro EUR = was up 0.07% to $ 1.1726.

US crude CLc1 was the latest up 1.45% to $ 39.86 a barrel and Brent LCOc1 was at $ 40.95, down 0.19% on the day. [O/R]

T-bills 10-year benchmark US10YT = last RR / 32 of the price for a yield of 0.6857%, compared to 0.677% Wednesday night.

The 30-year US30YT = RR last / 32 bond outstanding for a yield of 1.4545%, starting at 1.452%.

The 2-year note US2YT = last RR / 32 in price for a yield of 0.1309%, starting at 0.125%.

Spot gold XAU = added 0.1% to $ 1,887.35 per ounce. GCc1 US gold futures fell 0.18% to $ 1,884.10 an ounce. [GOL/]

Chinese stock and bond markets, foreign exchange and commodity futures markets will be closed October 1-8 for the Golden Week holidays. The markets in South Korea and Hong Kong are also closed on Thursdays and Fridays for holidays.

Reporting by Katanga Johnson; Edited by Himani Sarkar

Original © Thomson Reuters

Originally posted 2020-10-01 02:06:11.

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