A glimmer of hope built across Asian markets in early trading Thursday, pushing oil prices higher on prospects of a combination of drugs including one from Gilead Sciences to fight the deadly Coronavirus with the world set to see off what could be the worst April on history.
The internationally traded crude benchmark Brent traded near $25 a barrel while the US crude grade WTI jumped 14% to close at $17.13 in Asia as stocks there rose on the final day of the month amid optimism from corporate results and signs of progress in treating the coronavirus. The dollar recouped some of this week’s retreat.
Japanese shares climbed more than 1.5% along with gains in Shanghai and Sydney, while Hong Kong and South Korea were shut for a holiday.
Nasdaq futures advanced after results from Microsoft Corp., Facebook Inc. and Tesla Inc. lifted sentiment. The S&P 500 Index earlier gained more than 2.5% to touch a seven-week high.
While the world continues to focus on Africa and its handling of the virus, experts still praise the continent’s anti-Covid-19 push amidst optimism the region will not be the source of a much feared rebound.
In Nigeria where some businesses are being allowed to re-open on Monday, anxiety for the health of the economy ebbed slightly following Tuesday’s expedited approval of an $3.4bn emergency aid by the board of the International Monetary Fund.
“What’s really driving markets at this stage is any positive news of potential treatments and vaccines, because ultimately that is a game changer,” said Seema Shah, a global investment strategist for Principal Global Investors. “That’s what’s going to be pushing markets, plus anything with regards to the lockdown being lifted earlier.”
The European Central Bank sets policy later Thursday, with Bloomberg Economics expecting the pandemic bond-buying program to be increased.
Global stocks are expected to keep the momentum next month as investors weigh plans by countries around the world to restart economic and social activity. The latest data from China showed a slight dip in manufacturing in April, while a reading on the services sector topped estimates. In Japan, industrial production slumped to its lowest since 2013 in March.
Meantime, the world received a grim reminder of shock to the global economy as the U.S. recorded its biggest contraction since 2008 as the world’s largest economy shrank at a 4.8% according to the GDP numbers for Q1.
Federal Reserve Chairman Jerome Powell voiced concern that the coronavirus crisis could leave permanent scars on the American economy and said policy makers of all stripes needed to do more to limit the damage.
