Asian shares jump, yields rise as Fed readies corp bond buying

Asian shares and Wall Street futures rallied on Tuesday as the formal start of the Federal Reserve’s corporate bond buying programme boosted global investor sentiment and calmed earlier worries about a second wave of coronavirus infections.

Asian shares

  • MSCI’s broadest index of Asia-Pacific shares outside Japan rose 2.2%, its biggest one-day gain since June 1. Australian stocks rose 3.0%, while shares in China rose 1.2%.
  • US stock futures, the S&P 500 e-minis, were up 0.98% following a late rally on Wall Street on Monday.
  • Japan’s Nikkei stock index and shares in South Korea were both on course for their biggest daily gain in two months.

Currency Markets

  • The Australian dollar rose 0.31% to $0.6942.
  • The Aussie is often traded as a liquid proxy for risk because of its close ties to China’s economy and global commodities.
  • The yen was little changed at 107.32 per dollar before a Bank of Japan meeting ending later on Tuesday.

Oil Prices

  • Crude oil futures erased gains and fell amid persistent doubts over whether supply cuts would be enough to reduce an oil glut.
  • US crude fell 1.2% to $36.68 a barrel. Brent crude declined by 1.2% to $39.23 per barrel.

 

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