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May 17, 2020, 11:47 p.m. EDT

Asian markets rise after Powell expresses confidence in recovery

Nikkei up after data shows Japan slipped into recession in Q1

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By Marketwatch


Bloomberg News
Pedestrians are reflected in a store window at the Sun Mall Ichibangai Arcade in Sendai, Japan.

Asian markets advanced in early trading Monday, as U.S. stock futures gained after comments from Fed chief Jerome Powell and crude oil prices rose toward a two-month high.

Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.72%   gained 0.7% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.99%   edged up 0.5%. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +2.01%   rose 0.4% while the smaller-cap Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +1.28%   inched up 0.1%. South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.80%   advanced 0.7% and Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.42%   gained 1.4%. Benchmark indexes in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 +0.88%  , Singapore /zigman2/quotes/210597985/delayed SG:STI +0.62%   and Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX +0.14%   were mixed.

Data showed Monday that Japan sank into recession in the first quarter of 2020, and that the current quarter is expected to be worse. Japan’s economy shrank 3.4% year-over-year in the January-March period, according to the Wall Street Journal, after a 7.3% decline in the previous quarter due to a sales-tax increase. While that was not as bad as the 4.8% pullback expected by economists, the second quarter is expected to shrink by 20% or more, due to the coronavirus state of emergency imposed in April.

Japanese conglomerate SoftBank Group Corp. /zigman2/quotes/207303954/delayed JP:9984 +2.63%   said Alibaba co-founder Jack Ma has resigned from its board of directors, and announced the approval of $4.7 billion in stock buybacks.

U.S. Federal Reserve Chairman Jerome Powell told “60 Minutes” on Sunday that the central bank has plenty of ammunition to fight the recession caused by coronavirus-related shutdowns, though he predicted tough times ahead, with the economy contracting more than 30% in the second quarter and unemployment hitting up to 25%.

But Powell said he expects a relatively quick rebound. “You wouldn’t want to bet against the American economy,” he said, noting that a recovery could stretch through next year.

Stock index futures climbed Sunday night, with Dow Jones Industrial Average futures /zigman2/quotes/210407078/delayed YM00 -0.53%   up nearly 300 points following Powell’s interview.

On Friday, the Dow /zigman2/quotes/210598065/realtime DJIA +0.36%   rose 61 points, or less than 0.3%, to 23,685.42, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.45%   added 11.20 points, or 0.4%, higher to end the session at 2,863.70. The Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP 0.00%   closed at 9,014.56 after gaining 70.84 points, or 0.8%. Still, all three indexes finished the week lower, with the Dow down 2.7%, the S&P 500 losing 2.3% and the Nasdaq 1.2% lower.

Late Sunday, U.S. crude oil prices continued rising toward a two-month high as the global balance of supply and demand starts to right itself. After rising about 19% last week, West Texas Intermediate crude for June delivery   was last above $30 a barrel. July Brent crude  , the global benchmark, gained more than 3%.

The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0140%   gained to 107.12 yen from Friday’s 107.08 yen.

/zigman2/quotes/210597971/delayed
JP : Nikkei
22,306.48
+160.52 +0.72%
Volume: 0.00
July 3, 2020 3:15p
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
25,373.12
+248.93 +0.99%
Volume: 2.32M
July 3, 2020 4:08p
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/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,152.81
+62.24 +2.01%
Volume: 45.88B
July 3, 2020 3:01p
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/zigman2/quotes/210598015/delayed
CN : Shenhzen Stock Exchange
2,041.89
+25.84 +1.28%
Volume: 51.29B
July 3, 2020 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,152.41
+17.04 +0.80%
Volume: 770,054
July 3, 2020 3:33p
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/zigman2/quotes/210598100/delayed
AU : S&P ASX
6,057.90
+25.20 +0.42%
Volume: 645,935
July 3, 2020 5:08p
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/zigman2/quotes/210597977/delayed
TW : Taiwan Stock Exchange
11,909.16
+104.02 +0.88%
Volume: 0.00
July 3, 2020 1:33p
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/zigman2/quotes/210597985/delayed
SG : Singapore: SGX
2,652.94
+16.25 +0.62%
Volume: 0.00
July 3, 2020 5:20p
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/zigman2/quotes/210597981/delayed
ID : Indonesia Stock Exchange
4,973.79
+7.01 +0.14%
Volume: 0.00
July 3, 2020 3:00p
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/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,778.00
+148.00 +2.63%
Volume: 23.89M
July 3, 2020 3:00p
P/E Ratio
38.77
Dividend Yield
0.76%
Market Cap
¥11948.88 billion
Rev. per Employee
¥126.96M
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/zigman2/quotes/210407078/delayed
US : U.S.: CBOT
$ 25,623.00
-136.00 -0.53%
Volume: 70,125
July 3, 2020 11:59a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
25,827.36
+92.39 +0.36%
Volume: 0.00
July 2, 2020 5:19p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,130.01
+14.15 +0.45%
Volume: 0.00
July 2, 2020 5:19p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
10,207.63
0.00 0.00%
Volume: 0.00
July 2, 2020 5:16p
loading...
/zigman2/quotes/210561789/realtime/sampled
US : Tullett Prebon
107.5200
+0.0150 +0.0140%
Volume: 0.0000
July 3, 2020 4:59p
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