* Fed announces indexing approach to bond buying program
* Cyclicals lead Wall Street gains
* U.S. indexes up
By Katanga Johnson
WASHINGTON, June 15 (Reuters) - Asian stocks were set to
follow a late Wall Street surge on Tuesday, after the Federal
Reserve's fresh move to support financial markets through the
coronavirus pandemic cheered investors.
Crude oil also rose, on signs of a recovery in fuel demand
and news suggesting major oil producing nations would meet their
commitments to cut output.
The Fed on Monday announced tweaks to its bond buying
program, widening the range of eligible assets to include all
U.S. corporate bonds that satisfied certain criteria.
This news came after the U.S. and other major central banks
halted a steep plunge in equity markets in March through a host
of fiscal and economic stimulus programs that helped restore
investor confidence.
However, analysts warn markets are likely to be volatile as
investors grow increasingly impatient over the pace of business
re-opening from the coronavirus-induced lockdowns.
Australian S&P/ASX 200 futures YAPcm1 were up 2.46%, while
Japan's Nikkei 225 futures NKc1 rose 0.36% to be up 2.5% from
the close of the underlying index on Monday.
Hong Kong's Hang Seng index futures .HSI .HSIc1 rose
1.65%.
Fears of a second wave of COVID-19 infections had earlier
rocked world markets, knocking down oil prices and major global
equity indices.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.03%.
Investors were spooked after China re-introduced
restrictions in some areas after Beijing reported its biggest
cluster of new infections since February. New cases and
hospitalizations in record numbers also swept through more U.S.
states. Data showed factories in China stepped up production for a
second straight month in May, giving investors hope, but also
sustained contractions in retail sales and investment,
suggesting many sectors were still struggling. "We were able to shake off the early morning negative
COVID-19 headlines from China," said Joe Saluzzi, a partner at
New Jersey-based brokerage firm, Themis Trading LLC.
"I think U.S. investors are keeping a close eye on the
COVID-19 data, but it will take a more pronounced uptrend in
positive cases for sellers to get more aggressive," added
Saluzzi.
The Japanese yen weakened 0.06% versus the greenback at
107.37 per dollar, while sterling GBP= last traded at $1.2615,
up 0.10% on the day.
Crude oil swung into positive territory on improving demand
and signs Organization of the Petroleum Exporting member states
and allies were complying with a production cuts.
Prices rebounded after the energy minister of the United
Arab Emirates voiced confidence that OPEC+ countries would meet
their commitments. U.S. crude CLc1 recently rose 0.19% to $37.19 per barrel
and Brent LCOc1 was at $39.89, up 3% on the day.
U.S. Treasury yields rebounded on the Fed announcement, as
investors set aside concerns over the spread of the coronavirus
that has boosted demand for safe-haven bonds.
Benchmark 10-year notes US10YT=RR last fell 14/32 in price
to yield 0.7462%, from 0.702% on Monday.
Euro zone yields edged down as investors bought safer assets
such as government bonds.
Germany's 10-year bond yield DE10YT=RR earlier was near a
three-week lows at -0.45%.
The dollar index against a basket of currencies =USD fell
0.6%.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
S&P 500 market cap, daily moves https://tmsnrt.rs/2YCDodm
Asset performance vs outbreak https://tmsnrt.rs/2YF3T1T
Stocks and oil versus COVID-19 cases https://tmsnrt.rs/3cXWNdO
Asia stock markets https://tmsnrt.rs/2zpUAr4
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