Asia stocks set to rise on upbeat data, focus on China PMI

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Asian markets were poised to follow Wall Street’s firm lead on Tuesday as the sentiment boost from upbeat U.S. data outweighed the threat of rising COVID-19 infections in the world’s largest economy.

FILE PHOTO: A man wearing a protective face mask walks past the Singapore Exchange (SGX) in central business district area in Singapore, April 7, 2020. REUTERS/Edgar Su 30 Jun 2020 08:05AM Share this content

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NEW YORK: Asian markets were poised to follow Wall Street’s firm lead on Tuesday as the sentiment boost from upbeat U.S. data outweighed the threat of rising COVID-19 infections in the world’s largest economy.

Investors cheered strong U.S. housing data that showed a bounce back in home sales, and are anticipating positive jobs data later this week as the U.S. jobs numbers are expected to tick up as people head back to work.

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“Overnight moves in markets were not large but one does get the distinct impression that markets have got it both ways – with equities rallying on rebounding data and bonds rallying on dismal COVID-19 news,” said ANZ Research analyst Rahul Khare.

Australian S&P/ASX 200 futures rose 1.15per cent while Japan’s Nikkei 225 futures ticked up 0.11per cent. Hong Kong’s Hang Seng index futures climbed 0.62per cent.

In Asia, investor focus will be on China’s official purchasing managers’ index (PMI), which is expected to show factory activity grew for a fourth straight month in June albeit at a slower pace, raising concerns the recovery in the world’s second-largest economy may be stalling.

A recent resurgence in coronavirus infections had caused some investors to doubt the strength of a rebound in global economic activity.

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However, gains in equities, long-term yields, and oil futures suggest the majority

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