A late Wall Street rally is expected to lead Asian stocks higher on Tuesday after tech shares and oil rose on easing coronavirus restrictions and prospects of an economic recovery, overcoming concerns about renewed Sino-U.S. trade tensions.
Futures on major U.S., Hong Kong and Australian indexes were up about 0.3% in early Asia trade after major Wall Street indexes ended up Monday. The tech-heavy Nasdaq Composite .IXIC closed up 1.2%.
Oil rose as much as 5% as countries announced they would began easing coronavirus lockdowns and crude supply cuts took effect.
The upturn for stocks came on more optimistic statements from the governors of California and New York for reopening businesses. Andrew Cuomo of New York on Monday outlined a phased reopening in the U.S. state hardest hit by the COVID-19 pandemic.
Early on Tuesday trading in Asia, futures for the S&P 500 ESc1 were up 0.1% and the Australian S&P/ASX 200 futures YAPcm1 were up 0.32%. Hong Kong’s Hang Seng index futures .HSI HSIc1 rose 0.24%. Japan and mainland China markets are closed for public holidays.
The Australian dollar fell 0.02% versus the greenback at $0.643.
The shift in sentiment came too late for European stocks with the pan-European STOXX 600 ending 2.7% lower. There were also concerns about declines in manufacturing in Europe and the U.S.
MSCI’s gauge of stocks across the globe .MIWD00000PUS shed 0.69% on Monday. Emerging market stocks lost 3.14%.
The Dow Jones Industrial Average .DJI rose 0.11% on Monday while the S&P 500 .SPX gained 0.42%.
The S&P 500 rise was powered by Microsoft , Apple and Amazon. Their strength overcame drops in airline shares of between 5% to 8% after legendary investor Warren Buffett said his Berkshire Hathaway had sold its carrier holdings.