By Katanga Johnson
WASHINGTON, April 23 (Reuters) - Asia equities face a bumpy
session on Friday after Wall Street pared early gains as
optimism over a rebound in oil prices and prospects for further
government stimulus were offset by stark economic data showing
the toll of the coronavirus pandemic.
Wall Street closed little changed on Thursday in the hope a
third straight decline in weekly jobless claims signaled the
worst of the pandemic's impact on the labor market was over.
Japan's Nikkei 225 futures NKc1 were down 0.1% but the
contract is up 1.4% from the Nikkei's index .N225 close of
19,137.95 on Thursday.
Australia's S&P/ASX 200 futures YAPcm1 were up 0.23% and
Hong Kong's Hang Seng index futures .HSI .HSIc1 rose 0.2%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.39% higher
The main U.S. stock indexes lost momentum, with the S&P 500
and Nasdaq turning negative at the close, as investors digested
a report that an experimental antiviral drug for the coronavirus
flopped in its first randomized clinical trial. Gilead Sciences Inc GILD.O said the findings were
inconclusive because the study conducted in China was terminated
early.
Sensitivity to news related to coronavirus therapies
reflects investors' desperation for any indication of when the
global economy might be able to start returning to normal, said
chief investment strategist at Inverness Counsel, Tim Ghriskey.
"Any piece of bad news is likely to rattle the market,"
Ghriskey said. "Investors are keen for a semblance of hope that
they can soon crawl out of their homes and get on with some form
of normal life, even if with trepidation and fear."
The U.S. House of Representatives passed a $484 billion bill
to expand federal loans to small businesses impacted by the
coronavirus outbreak and hospitals overwhelmed by patients
suffering from COVID-19.
President Donald Trump, who has said he will sign the bill,
said late Thursday that he may need to extend social distancing
guidelines to early summer. The energy index .SPNY rose 3%, easily leading the 11 S&P
500 sectors as oil prices recovered in a tumultuous week that
saw U.S. crude futures crash below zero for the first time in
history.
The decline on Monday came amid an April rally of U.S. stock
indexes eyeing a raft of global stimulus. However, the benchmark
S&P 500 remains more than 15% below its record high as worsening
economic indicators foreshadow a deep global recession.
The Dow Jones Industrial Average .DJI rose 39.44 points,
or 0.17%, to 23,515.26, the S&P 500 .SPX lost 1.51 points, or
0.05%, to 2,797.8 and the Nasdaq Composite .IXIC dropped 0.63
points, or 0.01%, to 8,494.75.
The pan-European STOXX 600 index .STOXX rose 0.94% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.32%.
U.S. business activity plumbed record lows in April,
mirroring dire figures from Europe and Asia as strict
stay-at-home orders crushed production, supply chains and
consumer spending, a survey showed. Meanwhile, in a virtual meeting, divided European Union
leaders began their search on Thursday for a joint financial
fund of up to 2 trillion euros to help recover from the
coronavirus pandemic and avoid economic collapse in the bloc's
poorer south. The U.S. dollar edged higher against the euro in a choppy
session after the meeting of the 27-member bloc leaders ended
without any agreement on details.
German Chancellor Angela Merkel signaled she was open to
offering major financial support for a coronavirus recovery
package, but wanted to see how it would be used before
committing. French President Emmanuel Macron said Europe's response to
economic turmoil caused by the coronavirus crisis required
financial transfers to the hardest-hit regions and not just
loans. Brent LCOc1 rose 96 cents, or 4.7%, to settle at $21.33 a
barrel, while U.S. crude CLc1 jumped $2.72, or 19.7%, to
settle at $16.50. These gains extend oil's rebound after major
oil-producing nations said they would accelerate planned
production cuts to combat the dramatic slump in demand due to
the COVID-19 pandemic
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Markit flash PMI IMAGE https://tmsnrt.rs/3bJ3sIQ
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