By Pete Schroeder
July 16 (Reuters) - Asian shares look set to continue a
march upwards as optimism over a coronavirus vaccine carry
weight over the ongoing spread of the disease and simmering
U.S.-China tensions.
Australian S&P/ASX 200 futures rose 0.37% in early
trading. Japan's Nikkei 225 futures added 0.07%, and Hong
Kong's Hang Seng index futures rose 0.25%.
E-mini futures for the S&P 500 rose 0.19%.
MSCI's gauge of stocks across the globe
closed up 1.16%.
A run of promising news in efforts to develop a COVID-19
vaccine ran through U.S. markets. An experimental vaccine
produced by biotech startup Moderna Inc showed it was
safe and provoked immune responses in volunteers, an early-
stage trial showed on Tuesday. There were also reports of
pending positive news on vaccine work from the University of
Oxford.
"U.S. equities continued to defy all gravity as investor
optimism revels amid the progress in developing a vaccine which
continues to reign supreme," wrote Stephen Innes, chief global
markets strategist at AxiCorp, in an analyst note.
In the United States, stocks closed sharply higher on the
vaccine news, buttressed by a strong quarterly report from
Goldman Sachs.
A new report from the Federal Reserve also found U.S.
businesses saw an uptick in activity as states relaxed
restrictions, although uncertainty about the outlook remained
with coronavirus cases spreading.
The Dow Jones Industrial Average rose 0.85%, while
the S&P 500 gained 0.91% and the Nasdaq Composite
grew 0.59%.
Oil prices rose thanks to a drop in U.S. crude inventories,
but gains were limited by plans from OPEC and its allies to ease
supply curbs. Brent crude settled up 89 cents, or 2.1%,
at $43.79 a barrel.
Investors appeared willing to take on more risk in currency
markets, pushing the safe-haven U.S. dollar to a one-month low.
The dollar index fell 0.105%, dropping below 96 for the
first time since June.
The risk appetite was also evident as U.S. Treasury yields
rose and the yield curve steepened, indicating a wider spread
between long- and short-term interest rates.
Investors will be watching for new economic data out of
China, which will release figures on second-quarter GDP data on
Thursday, along with June factory output, retail sales and
fixed-asset investment. A Reuters poll found analysts expect
China to report 2.5% economic growth, reversing a 6.8%
first-quarter decline driven by the pandemic.
(Reporting by Pete Schroeder in Washington; Editing by Tom
Brown)