GLOBAL MARKETS-Stocks rise as more economies emerge from lockdown

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei up 1.5% after Wall Street rally
* More countries ease lockdowns despite new infections
* Treasury yields edge up ahead of Fed chair speech

By Wayne Cole and Kane Wu
SYDNEY/HONG KONG, May 11 (Reuters) - Asian shares followed
Wall Street higher on Monday as investors looked ahead to more
countries restarting their economies, even as some reported an
unwelcome pick up in new coronavirus cases.
European markets are also heading north, with EUROSTOXX 50
futures STXEc1 and FTSE futures FFIc1 up about 1%. E-Mini
futures for the S&P 500 ESc1 opened softer but bounced as the
Asia day wore on and was last up 0.5%.
Encouraging investors in Asia was further loosening of
coronavirus restrictions in the region with New Zealand easing
some curbs from Thursday while Japan plans to end a state of
emergency for areas where infections have stabilised.
In Europe, millions of French people are also set to
cautiously emerge from one of that region's strictest lockdowns
on Monday. That comes even as South Korea warned of a second wave of
the new coronavirus as infections rebounded to a one-month high,
while new infections accelerated in Germany. Investors seemed determined to stay optimistic and MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS firmed 1.1%.
Japan's Nikkei .N225 climbed 1.5% to 20,485.00 points in
afternoon trade. Earlier in the session, the index rose as much
as 1.8% to hit its highest since March 6.
Chinese blue chips .CSI300 rose 0.1%. Chinese inflation
and production data due this week will be closely watched for
clues on how the pandemic has hit demand in the world's
second-largest economy.
Wall Street had rallied on Friday after the April payrolls
report proved dire but not quite as awful as analysts' worst
fears. "Just getting the worst jobs report in history out, is at
the margins helpful for risky assets," said Alan Ruskin, head of
G10 FX at Deutsche Bank.
"Since late March there has been an extraordinary divergence
between the real economy and financial risk, with the latter
helped by unprecedented policy accommodation," he added.
"Markets know the real economy data is awful. We are less
sure of how long markets aided by policy, can defy the real
economy, if the growth improvement is slow."
The bond market certainly seems to think any recovery will
be slow with two-year yields US2YT=RR hitting record lows at
0.105% and Fed fund futures 0#FF: turning negative for the
first time ever. US/
The rally in prices has come even as the U.S. Treasury plans
to borrow trillions of dollars in the next few months to plug a
gaping budget deficit.
Federal Reserve Chair Jerome Powell is due to give a keynote
speech on Wednesday and analysts suspect he will rule out taking
rates negative, at least for now.
The decline in U.S. yields might have been a burden for the
dollar but with rates everywhere near or less than zero, major
currencies have been stuck in tight ranges.
The dollar was a shade firmer on the yen at 106.94 JPY= on
Monday but well within the 105.97 to 109.37 band that has lasted
since late March. The euro was a fraction softer at $1.0848
EUR= but above last week's low at $1.0765.
Against a basket of currencies, the dollar was idling at
99.701 =USD , sandwiched between support at 98.769 and
resistance around 100.40.
In commodity markets, gold edged up 0.32% to $1,706 an ounce
XAU= . GOL/
Oil prices opened about 1% lower as a persistent glut
weighed on prices and the coronavirus pandemic eroded global oil
demand, even as some governments began to ease lockdowns. O/R
Brent crude LCOc1 futures lost 22 cents to $30.75 a
barrel, while U.S. crude CLc1 fell 15 cents to $24.59.

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