Global Markets: Risky Assets Rise Under Chinese Leadership, Yen Declines

Global Markets: Risky Assets Rise Under Chinese Leadership, Yen Declines

Asian stocks and US stock futures rose for the first time since eight days Monday, driven by support signals from central banks. Bond rates limited the decline and the yen retreated. In China, the CSI 300 Index fell more than 3 percent, and S&P 500 Index futures climbed around 1 percent after last week's sales wave, with the Central Bank of Japan (BoJ) taking steps to stabilize the markets. The Fed signaled Friday that it is open to policy expansion, and some strategists are waiting for moves from the bank as soon as Monday. While recovering oil losses, the South Korean Won climbed with strong data. Although interest rates on the US, Australia, and New Zealand treasury bonds limited their decline, they remained weak. Dollar depreciated. Investors are increasingly pricing support from monetary authorities from Washington to Sydney. Global deaths from coronavirus exceeded three thousand. The number of cases in the USA increased at the weekend. The first positive test result was reported in New York State. The number of cases jumped in Italy and South Korea. There were casualties in the USA, Thailand, and Australia. "We are beginning to hear more about the situation from governments at both the financial and central bank points," said Damien Loh, Ensemble Capital Pte CIO in Singapore. He said, and most of the bad news was priced. Goldman Sachs Group Inc. economists said the virus expects a short-lived contraction on the world economy and the Fed expects to cut interest rates in the first half. Fed President Jerome Powell opened the door for interest rate cuts, signaling virus-related risks to the US economy.