GLOBAL MARKETS-Asia shares dragged higher by S&P 500, oil and gold jump

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei gains 0.5%, S&P 500 futures climb 1.1%
* Brent jumps to 5-week high on hopes for demand revival
* Gold at 7-year peak amid lake of liquidity, low rates

By Wayne Cole
SYDNEY, May 18 (Reuters) - Asian shares were hauled higher
by S&P 500 futures on Monday and oil prices hit a five-week peak
as countries' efforts to re-open their economies stirred hopes
the world was nearer to emerging from recession.
Warm weather is enticing much of the world to emerge from
coronavirus lockdowns as centres of the outbreak from New York
to Italy and Spain gradually lift restrictions that have kept
millions cooped up for months. "The economies of Europe and the U.S. likely bottomed out in
April and are slowly starting to come back to life," wrote
Barclays economist Christian Keller in a note.
"However, incoming data from most economies highlight the
depth of the contraction, raising risks of longer-term scarring
that might undermine the recovery."
Data in Japan confirmed the world's third largest economy
slipped into recession in the first quarter, putting it on
course for its worst postwar slump as the coronavirus takes a
heavy toll. Still, MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS edged up 0.1%. Japan's Nikkei .N225 rose
0.5% and Chinese blue chips .CSI300 0.5%.
More carefree were E-Mini futures for the S&P 500 ESc1
which added 1.1%, even though results from a raft of U.S.
retailers are likely to make messy reading. EUROSTOXX 50 futures STXEc1 gained 1.9% and FTSE futures
FFIc1 1.6%.
Federal Reserve Chairman Jerome Powell took a cautious line
in an interview over the weekend, saying a U.S. economic
recovery may stretch deep into next year and a full comeback
might depend on a coronavirus vaccine. Late Sunday, Powell outlined the likely need for three to
six more months of government financial help for firms and
families. Data out on Friday showed retail sales and industrial
production both plunged in April, putting the U.S. economy on
track for its deepest contraction since the Great Depression.
Adding to the uncertainty were the trade tensions between
the United States and China, with Beijing warning it was opposed
to the latest rules against telecoms equipment company Huawei
HWT.UL . U.S. lawmakers and officials are crafting proposals to push
American companies to move operations or key suppliers out of
China that include tax breaks, new rules, and carefully
structured subsidies. DICED
In a report on the outlook for corporate dividends, Janus
Henderson Investors argued Europe and the UK would be more badly
affected than North America, while technology, healthcare, food
and most basic consumer sectors should be safer.
Its base case scenario was for a 15% drop in global
dividends this year, worth $213 billion, and a worst-case fall
of 35%.
One focus this week will be the U.S. Treasury Department's
first auction for its 20-year bond on Wednesday. Treasury plans
to borrow a record amount of nearly $3 trillion this quarter.
So far, the market has easily absorbed the flood of new debt
with 10-year yields US10YT=RR holding to a tight range around
0.64%. US/
The dollar has also been largely range-bound, with its
safe-haven appeal keeping it well supported overall. Against a
basket of currencies, it was last at 100.340 =USD having
drifted 0.7% higher last week.
The euro was steady at $1.0820 EUR= , while the dollar was
a fraction firmer on the Japanese yen at 107.13 JPY= .
The pound briefly touched a seven-week low at $1.2073 GBP=
after the chief economist of the Bank of England said it was
looking more urgently at options such as negative interest rates
and buying riskier assets to prop up the economy. In commodity markets, the flood of liquidity from central
banks combined with record-low interest rates to help lift gold
to a seven-year peak. The metal was last up 1.2% to $1,762 an
ounce XAU= , with silver and palladium also on a roll. GOL/
Oil prices rose as demand picked up as countries around the
world eased travel restrictions, with U.S. oil showing no signs
of last month's price rout ahead of the expiry of the June WTI
contract on Tuesday. O/R
Brent crude LCOc1 futures firmed $1.08 to $33.58 a barrel,
while U.S. crude CLc1 rose $1.27 to $30.70.

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