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Asia Stocks Rise, Extending Second-Quarter Rebound: Markets Wrap

The flags of China, left, and of the Hong Kong Special Administrative Region (HKSAR) are flown in Hong Kong, China, on Monday, June 29, 2020. The national security law that China could impose on Hong Kong as early as this week won't need to be used if the financial hub's residents avoid crossing certain "red lines," according to Bernard Chan, a top adviser to Hong Kong Chief Executive Carrie Lam. Photographer: Paul Yeung/Bloomberg

Asian stocks advanced Tuesday, set to round out their best quarter since 2009 in a rebound from a devastating start to the year, as optimism about a recovery overshadows concerns over an increase in U.S. coronavirus cases.

Benchmarks rose more than 1% in Japan, Australia and South Korea. Hong Kong gains were more modest after the Trump administration suspended some trade benefits for the city over China’s new national security law for the financial hub. S&P 500 futures edged higher after the index erased its June decline in wake of positive U.S. home sales data. The dollar and Treasuries were little changed. Oil retreated.
Earnings-forecast revisions by U.S. companies are the most positive in 20 years

Investors are weighing an improvement in economic data against a continued increase in cases. Following the stronger-than-forecast U.S. pending home sales figures Monday, China Tuesday reported improving purchasing-manager indexes for both manufacturing and services.

The MSCI All Country World Index is up about 18% this quarter, the biggest advance in 11 years — on the heels of the worst quarter since 2008. The rebound comes even as deaths from the virus surpass 500,000 and confirmed cases exceed 10 million, with the World Health Organization warning the worst is yet to come.

“It’s not clear what trajectory coronavirus is heading,” Tom Lee, co-founder and head of research at Fundstrat Global Advisors, said on Bloomberg TV. “But I also think because we’re into quarter-end, there’s been some re-balancing. So I’m kind of in the camp that any weakness is short-lived. I would think July is going to be a strong month for stocks.”

Meanwhile, U.S. Commerce Secretary Wilbur Ross said in a statement that regulations affording preferential treatment to Hong Kong over China, including the availability of export license exceptions, were suspended. Ross pointed to China’s imposition of new security measures on Hong Kong and risks surrounding U.S. technology. China’s top legislative body unanimously voted to pass Hong Kong’s national security legislation, Now TV reported.

Here are some key events coming up:

  • Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee on Tuesday.
  • The monthly U.S. jobs report will be released on Thursday.

These are some of the main moves in markets:


  • S&P 500 futures rose 0.2% as of 11:32 a.m. in Tokyo. The S&P 500 Index rose 1.5%.
  • Topix index rose 1.2%.
  • Australia’s S&P/ASX 200 Index climbed 1.3%.
  • South Korea’s Kospi index rose 1.3%.
  • Hong Kong’s Hang Seng Index rose 0.8%.
  • Shanghai Composite Index rose 0.4%.


  • The yen was little changed at 107.70 per dollar.
  • The offshore yuan traded at 7.0667 per dollar.
  • The euro was at $1.1244.
  • Bloomberg Dollar Spot Index was flat.


  • The yield on 10-year Treasuries was little changed 0.63%.
  • Australia’s 10-year bond yield fell one basis point to 0.87%.


  • West Texas Intermediate crude fell 0.8% to $39.39 a barrel after a 3% gain.
  • Gold was flat at $1,771 an ounce.

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