(Bloomberg) — Asian stocks looked set to rise Thursday after U.S. shares rallied amid speculation that the economic recovery will weather temporary disruption from the omicron virus strain outbreak.
Futures for Japan and Hong Kong climbed. Australia rose and U.S. futures edged higher. The S&P 500 is once again closing in on its record high, with sentiment aided by rising consumer confidence and home sales. Studies signaling omicron may be less likely to land patients in hospital than the delta variant also helped the mood.
At the same time, officials remain cautious since omicron spreads quickly. In China, the central city of Xi’an is tightening rules to curb a Covid outbreak.
The dollar fell and longer maturity Treasury yields dipped. Oil extended a rally to around $73 a barrel, near its highest in about four weeks. Gold held an advance.
A gauge of global stocks is up more than 2% so far this month, leaving the index up 15% for the year and on course to surpass 2020’s gain. Markets, though, have been volatile of late as traders evaluated virus risks and moves toward tighter monetary policy to check high inflation.
“Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know,” Carol Schleif, BMO Family Office deputy chief investment officer, said on Bloomberg Television. “But it seems like it’s edging toward something more positive.”
The latest U.S. figures also showed that third-quarter gross domestic product growth was revised up.
Further on the virus front, Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S.
What to watch this week:
- Bank of Japan Governor Haruhiko Kuroda speaks Thursday
- U.S. initial jobless claims, personal income, durable goods, University of Michigan consumer sentiment, new home sales on Thursday
- Friday: U.S. markets are closed. European markets close earlier
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.1% as of 8:15 a.m. in Tokyo. The S&P 500 rose 1%
- Nasdaq 100 futures added 0.1%. The Nasdaq 100 rose 1.2%
- Nikkei 225 futures rose 0.7%
- Australia’s S&P/ASX 200 Index added 0.4%
- Hang Seng Index futures gained 0.4% earlier
Currencies
- The Japanese yen was at 114.12 per dollar
- The offshore yuan was at 6.3777 per dollar
- The Bloomberg Dollar Spot Index fell 0.4%
- The euro was at $1.1324
Bonds
- The yield on 10-year Treasuries dipped on basis point to 1.45%
- Australia’s 10-year yield rose about two basis points to 1.61%
Commodities
- West Texas Intermediate crude rose 0.3% to $72.99 a barrel
- Gold was at $1,803.81 an ounce
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