Asian stocks struggled for headway on Wednesday as the second half of the year got underway, with improving economic data offset by worries that surging coronavirus cases in the United States could derail the world’s recovery before it properly begins.
Following firm US housing data and signs of a rebound in Europe’s economy, the latest boost to sentiment came from Chinese factory activity gathering steam in June, with the Caixin/Markit manufacturing PMI rising to 51.2 compared with expectations for 50.5.
But virus cases surged, too, with the US recording 47,000 infections on Tuesday, its biggest single-day spike since the pandemic began.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 percent, led by gains in Korea and China.
Japan’s Nikkei slipped 0.2 percent, though, US stock futures fell 0.3 percent and gold sat close to an eight-year peak, pointing to elevated caution.
The moves follow a strong finish to the quarter on Wall Street and also a loss of momentum in recent weeks as US infection rates have surged, with some states reimposing restrictions on business and personal activity.
The S&P 500 index rose 1.5 percent for an almost 20 percent gain over the past three months, fuelled by unprecedented central bank stimulus and hopes for a swift pandemic recovery, but it rose only 1.8 percent in June.
Coronavirus cases more than doubled in 14 US states last month, a Reuters analysis showed, and fears are growing that the caseload could prompt fresh lockdowns. — Reuters
