Asia report: Markets mostly higher despite surge in global infections
By Josh White
Date: Monday 06 Jul 2020
(Sharecast News) - Markets in Asia finished mostly higher on Monday, with those in China skyrocketing, even after the World Health Organization reported a record 24-hour period of more than 200,000 new Covid-19 infections globally over the weekend.
In Japan, the Nikkei 225 was up 1.83% at 22,714.44, as the yen weakened 0.04% against the dollar to last trade at JPY 107.55.
Of the major components on the benchmark index, automation specialist Fanuc was up 2.66%, fashion firm Fast Retailing added 2.91%, and technology conglomerate SoftBank Group was 2.42% higher.
The broader Topix index was 1.6% firmer by the end of trading in Tokyo, settling at 1,577.15.
On the mainland, the Shanghai Composite soared 5.71% to 3,332.88, and the smaller, technology-heavy Shenzhen Composite was 3.9% stronger at 2,121.59.
South Korea's Kospi added 1.65% to 2,187.93, while the Hang Seng Index in Hong Kong was 3.81% stronger at 26,339.16.
Both of the blue-chip technology stocks were stronger in Seoul, with Samsung Electronics up 2.61% and chipmaker SK Hynix advancing 0.7%.
The positive market sentiment throughout the region came despite the WHO reporting on Saturday that more than 200,000 new coronavirus cases were reported in a 24-hour period, marking a fresh record.
In the United States, both Florida and Texas recorded fresh daily records on Saturday as well, leading to concerns that fresh lockdowns could pour cold water on any economic recovery stateside.
Neil Wilson, chief market analyst at Markets.com, said the "very strong" US nonfarm payrolls number on Friday was still masking "a lot of ills", with investors happy to hang their hopes on more stimulus.
"It looks like local investors are chasing the market and the spill-over has lifted the boats across Asia.
"China's rally sparked a broad risk-on move," he said, adding that an escalation in US-China tensions did not "seem to be a major worry".
Oil prices were higher as the region went to bed, with Brent crude last up 1.59% at $43.48 per barrel, and West Texas Intermediate rising 1.54% to $40.86.
In Australia, the S&P/ASX 200 went against the regional trend, falling 0.71% to 6,014.60, as the country's big four banks all closed weaker.
Australia and New Zealand Banking Group was down 0.36%, Commonwealth Bank of Australia lost 0.21%, National Australia Bank shed 0.21%, and Westpac Banking Corporation was 0.49% softer.
Across the Tasman Sea, New Zealand's S&P/NZX 50 managed gains of 0.84% to 11,656.21, led higher by retirement property developer Metlifecare, which rocketed 10.3% after a fresh takeover bid from Sweden-based investment firm EQT.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.3% at AUD 1.4365, and the Kiwi advancing 0.08% to NZD 1.5292.
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