Asia shares seen higher, but economic woes may cap gains; all eyes on China's trade data to be released today

All eyes will be on China’s trade data, to be released on Tuesday, which is expected to show exports tumbling 14 percent in March from a year ago,

Reuters April 14, 2020 06:49:36 IST
Asia shares seen higher, but economic woes may cap gains; all eyes on China's trade data to be released today

New York: Asian stocks were set for a modest bounce on Tuesday as US stock futures edged higher, although fears the coronavirus could drag on the global economy for months are likely to temper investor confidence.

E-Mini futures for the S&P 500 ESc1 nudged 0.3% higher, while Nikkei futures NKc1 pointed to an opening gain of about 70 points.

All eyes will be on China’s trade data, to be released on Tuesday, which is expected to show exports tumbling 14 percent in March from a year ago, as the coronavirus shutters businesses around the world, crippling demand and economic growth.

Indeed, some analysts are saying any optimism over signs the outbreak may be peaking in hard-hit cities is quickly being offset by concerns that it may be awhile yet before businesses recover.

“Signs of the outbreak peaking — or at least slowing in some regions — have started to turn the talk to when restrictions on activity can be eased,” analysts at JP Morgan said in a note. “Short of the unlikely near-term event of a vaccine or significant herd immunity, restarting economies...may be challenging,” the analysts wrote.

Wall Street indexes ended mixed on Monday with the Dow and S&P 500 falling while a 6.2 percent gain in Amazon shares helped the Nasdaq end higher.

In Asia, an expected trade slump in China will reinforce views that the world is headed for a global recession this year, despite an unprecedented burst of stimulus from policymakers in the last two months to shore up growth.

Asia shares seen higher but economic woes may cap gains all eyes on Chinas trade data to be released today

Representational image. Reuters

Many analysts already expect China’s economy, the world’s second-largest, to have contracted sharply in the March quarter for the first time since at least 1992. China reports its first-quarter gross domestic product data on April 17.

Elsewhere, Britain’s finance minister told colleagues the UK economy could shrink by up to 30 percent this quarter due to the coronavirus lockdown that has shuttered businesses.

In another sign of worries about struggling global demand, oil prices barely reacted to a global deal to cut output by a record amount of nearly 10 percent of world supply. US crude CLc1 was up just 39 cents at $22.8, well under its January peak of $63.27.

A skittish market helped gold prices to cling to highs not seen in more than seven years at $1,718.46 an ounce.

In the United States, which has recorded the highest number of casualties from the virus in the world, President Donald Trump said on Monday his administration was close to completing a plan to re-open the US economy, even though some state governors have signalled that the decision on when to restart businesses lay with them.

The dollar continued to extend losses on the back of the US Federal Reserve's massive new lending programme. The dollar index fell 0.105 percent, while the Japanese yen was flat versus the greenback at 107.68 per dollar. The euro was also little changed against the dollar at $1.0917.

The yield for benchmark 10-year U.S. Treasury notes edged higher to 0.7697 percent.

Updated Date:

also read

Religious and political events among factors that accelerated COVID-19 transmission in India, says WHO
India

Religious and political events among factors that accelerated COVID-19 transmission in India, says WHO

The WHO said that India continues to account for 50 pecent of global cases and 30 percent of global deaths even as the number of new COVID-19 cases and deaths globally decreased slightly this week, with over 55 lakh cases and over 90,000 deaths

Over 84 lakh vaccines still available with states, UTs; 17.49 cr doses provided so far, says Centre
India

Over 84 lakh vaccines still available with states, UTs; 17.49 cr doses provided so far, says Centre

Out of the 53.25 lakh vaccine doses expected to be distributed among states and union territories in the next three days, Gujarat will get 8.98 lakh vaccine doses, the highest quota among all

Berlin Film Festival confirms all-outdoor edition in June, organisers say 'received positive signals' from govt
Entertainment

Berlin Film Festival confirms all-outdoor edition in June, organisers say 'received positive signals' from govt

The event will comprise of movies shown online at the March edition, including the winners of its Golden and Silver Bear prizes, which will be awarded at a gala ceremony on 13 June.