Global stocks and US futures rose on Tuesday, as a growing number of cities and countries around the world take steps toward re-opening their economies.
Japan’s Nikkei 225 (N225) was among the biggest winners in Asia, climbing 2.6% after Prime Minister Shinzo Abe on Monday lifted the state of emergency for the entire nation and gave his support for a huge new stimulus package. Benchmark indexes in Shanghai (SHCOMP) and Taipei added 1%, while Australia’s ASX All Ordinaries added 2.8%
In Europe, Germany’s DAX (DAX) increased by 0.8% in early trading and France’s CAC 40 (CAC40) added 1.3%. The FTSE 100 (UKX) gained more than 2% in London. UK Prime Minister Boris Johnson on Monday announced plans to reopen all shops by the middle of June.
US stock futures also rose after Americans crowded onto packed beaches in Florida, Maryland, Georgia, Virginia and Indiana for the Memorial Day weekend. Many states have begun lifting restrictions on businesses and public spaces.
Dow futures were up 490 points, or around 2%. Futures for the S&P and Nasdaq added 1.9%.
There is a sense of “re-opening optimism” among investors, Stephen Innes, global market strategist at AxiCorp, wrote in a research note.
Oil prices, which have been slammed by the sharp drop in demand caused by the pandemic, jumped during Asian trading hours Tuesday. US crude futures were up 3.7% to trade at $34.46 per barrel. Brent crude, the international oil benchmark, rose 2.3% to $36.36 per barrel.
Hong Kong stocks
Hong Kong’s Hang Seng (HSI) Index advanced more than 2%, recovering some ground after investors were stunned by news last week that Beijing plans to implement a controversial national security law in the financial hub.
The Hang Seng had its worst day in nearly five years on Friday after Beijing said that it would effectively bypass Hong Kong’s legislature to enact the law.
China’s foreign ministry commissioner in Hong Kong, Xie Fang, moved to reassure rattled investors on Monday evening.
The legislation won’t affect freedoms of speech, press, publication and assembly, Xie said, according to state-run news agency Xinhua. Xie added that the controversial legislation will protect the operations of international businesses in Hong Kong.
The “clouds of dust in Hong Kong have settled quicker than anyone had expected. Local risk sentiment isn’t nearly as gnarly as everyone had feared,” said Innes.
Still, the move by Beijing is expected to fuel another round of clashes between pro-democracy protesters in Hong Kong and the city’s police force.
— CNN’s Laura He and Kaori Enjoji contributed to this report.