GLOBAL MARKETS-Oil, stocks poised to gain in Asia on economic growth hopes

* U.S., Hong Kong stock futures up modestly
* Oil climbs as governments move to reopen business
* Wall Street trims earlier gains
* European stocks jump
* Japan markets closed for holiday

By David Henry
NEW YORK, May 5 (Reuters) - Global stocks and crude prices
were set to extend gains in Asia on Wednesday on confidence that
government steps to restart economies will bring back growth and
demand for oil.
Futures on major U.S. and Hong Kong stock indexes were up
following gains in a global stock index and an oil price surge
of as much as 25%.
Financial markets had mostly dismissed grim economic losses
from the coronavirus pandemic, but had second thoughts later in
the day, trimming gains after downbeat comments from a senior
member of the U.S. Federal Reserve.
Futures for the S&P 500 ESc1 rose 0.38%. Hong Kong's Hang
Seng index futures .HSI HSIc1 rose 0.32%.
However, Australian S&P/ASX 200 futures YAPcm1 lost 0.20%
in early trade.
Stock markets in mainland China will reopen for the first
time since Thursday after a holiday break.
On Wall Street, the S&P 500 rose as much as 2% during the
day. The index cut gains by just over half at the close after
U.S. Federal Reserve Vice Chair Richard Clarida warned that
economic data would get much worse before getting better,
possibly in the second half of the year. Gains in Brent in early Asia trade could extend the global
benchmark's string of gains to seven straight sessions while
West Texas Intermediate rallied for the sixth consecutive
session.
Fuel demand worldwide was down roughly 30% in April, but
that has since risen modestly due to efforts to lift travel
restrictions. "The market is starting to realize that demand destruction
has been terrible, but we're reopening and demand is going to
get better," said Phil Flynn, senior analyst at Price Futures
Group.
The Dow Jones Industrial Average .DJI rose 0.56%, the S&P
500 .SPX gained 0.90%, and the Nasdaq Composite .IXIC added
1.13%.
MSCI's gauge of stocks across the globe .MIWD00000PUS rose
1% overnight. The pan-European STOXX 600 index .STOXX closed
nearly 2.2% higher.
U.S. Treasury yields rose on evidence of the increasing need
for the government to finance economic stimulus and in
anticipation of an economic recovery.
The yield on benchmark 10-year notes US10YT=RR rose on
Tuesday to 0.66% from 0.63% late on Monday.
Traders will also be watching Wednesday for the ADP National
Employment Report of private U.S. payrolls. It could foretell
the damage to be revealed on Friday in the official U.S.
government measure of jobs in April, estimated to show nearly 22
million jobs were lost last month.
In line with rising Treasury yields, the U.S. dollar rose
for a third session on Tuesday against most major currencies.
The dollar index =USD rose 0.287%he euro EUR= unchanged
at $1.0838 after a ruling from Germany's highest court on
Tuesday that the European Central Bank must justify bond
purchases under its flagship stimulus program or lose the
Bundesbank as a participant. Spot gold XAU= dropped 0.2% to $1,702.55 an ounce.

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