Global shares up as recovery hopes overshadow virus worries

Published 11:22 am Tuesday, May 26, 2020

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AP Business Writer
TOKYO (AP) — Global shares rose Tuesday as hopes for economic recovery overshadowed worries over the coronavirus pandemic.
Investors are shifting their focus to how various nations are adapting to getting back to business, while striving to keep new COVID-19 cases in check.
France’s CAC 40 was up 1% to 4,585 as the government was due to unveil support measures for the auto industry. Germany’s DAX gained 0.6% to 11,458 and the FTSE 100 in Britain, which was closed for trading Monday, rose 1.2% to 6,063.
U.S. shares were set for gains after a long weekend, with the future for the Dow industrials adding 1.9% and the future for the S&P 500 rising 1.8%.
Traders are awaiting U.S. consumer confidence data for May and home sales for April, indicators that might give further clues into the severity of the downturn brought on by the pandemic.
“As is the financial market’s wont these days … even the slimmest of positive news on the COVID-19 front triggers a bullish immune response and another wave of the peak-virus trade,” said analyst Jeffrey Halley of trading platform Oanda.
Comments from China’s central bank governor on support for its slowing economy also lifted sentiment.
Yi Gang, in an interview on the bank’s website, promised to push down borrowing costs for entrepreneurs and “support development of the real economy.”
He said the People’s Bank of China will pursue a “more flexible” monetary policy in line with official goals announced Friday by Premier Li Keqiang of helping smaller and private companies survive the coronavirus pandemic.
The interview was published as China’s largely ceremonial National People’s Congress holds its annual session, where other senior officials have stressed the need to push growth higher and create jobs, while steering clear of excess government spending.
In Japan, government assessments of commuter train usage showed traffic was still much less than normal on Tuesday after the country lifted its pandemic state of emergency for Tokyo and several other areas. The relaxed precautions are meant to involve what Prime Minister Shinzo Abe has dubbed a “new lifestyle,” with widespread wearing of masks and face shields.
Tokyo’s benchmark Nikkei 225 jumped 2.6% to finish at 21,277.77, in a rebound to levels for the index not touched since early March. Australia’s S&P/ASX 200 surged nearly 3.0% to 5,780.00. South Korea’s Kospi gained 1.8% to 2,029.78. Hong Kong’s Hang Seng added 1.9% to 23,384.66, while the Shanghai Composite advanced 1.0% to 2,846.55.
Benchmark U.S. crude gained 77 cents to $34.02 a barrel in electronic trading on the New York Mercantile Exchange. It closed at $33.25 on Friday, and markets were closed on Monday. Brent crude oil, the international standard, rose 48 cents to $36.60 a barrel.
The dollar fell to 107.52 Japanese yen from 107.69 yen late Monday. The euro rose to $1.0964 from $1.0898.

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