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

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei gains 0.6%, 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 led 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.
Summer 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."
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.
Closer to home, 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. 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 . MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS still edged up 0.4%. Japan's Nikkei .N225 rose
0.6% and Chinese blue chips .CSI300 0.3%.
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 this week are likely to make grim reading.
EUROSTOXX 50 futures STXEc1 also gained 1.5% and FTSE
futures FFIc1 1.4%.
Dealers reported much chatter about a possible treatment for
COVID-19 from drug maker Sorrento Therapeutics SRNE.O which
saw its shares soar on Friday.
Another focus 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 100.380 =USD having
drifted 0.7% higher last week.
The euro was steady at $1.0826 EUR= , while the dollar was
a fraction firmer on the Japanese yen at 107.10 JPY= .
The pound 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. O/R
Brent crude LCOc1 futures firmed 96 cents to $33.46 a
barrel, while U.S. crude CLc1 rose 98 cents to $30.41.

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