Asian equities rose Friday along with U.S. and European futures as investors continue to weigh moves to reopen economies and moves on trade negotiations between the U.S. and China against data illustrating the enormous damage wreaked by the coronavirus.
S&P 500 futures hit their session highs after reports that China and the U.S. had a constructivephone call on trade. On Thursday, the tech-heavy Nasdaq Composite turned positive for 2020, wiping out losses of as much as 24%. Two-year Treasury yields continued to trend lower after plunging to a record. The dollar dipped after U.S. interest-rate futures reflected risk of policy makers adoptingnegative interest rates.
While the U.S. is forecast to report a record drop of more than 20 million in payrolls, equities have managed to weather other dire data in recent days, as some investors bet on recovery. The strong rebound in risk assets in April has left others questioning whether further gains are warranted.
“While the collapse in economic activity is historic, so too is the global policy response to cushion the impact and support a recovery,” JPMorgan Chase & Co. strategists including Marko Kolanovic wrote in a May 7 note. “We expect risky assets to continue to recover as economies reopen,” though the pace of gains will likely slow, they wrote.
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Elsewhere, oil edged higher following a day of wild price swings as investors weighed supply-and-demand fundamentals against Saudi Arabia’s global price hike. Bitcoin rose above $10,000 for the first time since late February.
Here are some key events coming up:
- U.K. markets will be closed on Friday for a holiday.
- Friday also brings the U.S. jobs report for April, expected to show a severe impact from the pandemic. The median forecast in a Bloomberg survey of economists calls for a 21 million plunge in payrolls
These are some of the main moves in markets:
Stocks
- Futures on the S&P 500 added 1.4% as of 7 a.m. in London. The gauge rose 1.2% on Thursday.
- Euro Stoxx 50 futures advanced 1.1%.
- MSCI Asia Pacific Index gained 1.7%.
Currencies
- The yen was little changed at 106.41 per dollar.
- The offshore yuan was little changed at 7.0858 per dollar.
- The euro bought $1.0843, up 0.1%.
Bonds
- The yield on 10-year Treasuries dipped to 0.63%.
- Australia’s 10-year yield dropped three basis points to 0.90%.
Commodities
- West Texas Intermediate crude rose 3.3% to $24.31 a barrel.
- Gold was little changed at $1,716 an ounce.
— With assistance by Scarlet Fu, Edward Bolingbroke, and Chris Anstey
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