Asia: Stocks rise after strong Wall Street moves

[SYDNEY] Stocks in Asia gained after data showed resilience in the US economy and investors speculated the fallout from the coronavirus could be contained. US equities earlier closed at an all-time high and Treasury yields held on to their advance.

Shares advanced in Tokyo, Seoul and Sydney.

Hong Kong opened more than 1 per cent higher as equities in the Asia Pacific could be on course for a third day of gains. Chinese stocks were little changed.

Risk sentiment was lifted after a string of reports on possible vaccines for the virus, but the World Health Organization (WHO) later said there are no proven therapeutics. On the data front: US firms added more jobs than forecast in January and business activity firmed in the services sector. Crude oil remained higher amid prospects for Opec+ output cuts.

The WHO has pushed back against suggestions of imminent breakthroughs on vaccines or treatments as efforts to stop the virus spreading ramp up. Hong Kong is taking additional steps to quarantine all arrivals from mainland China and is shutting its cruise-ship terminal. Meantime, traders will be watching out for central bank decisions in India and the Philippines on Thursday.

"Companies are going to continue to struggle in the short term" with disruptions and forgone business due to the virus, said Joe Zidle, chief investment strategist at Blackstone Group Inc.

But China's moves in recent days to reopen markets and inject stimulus "gave global investors a degree of confidence that the Chinese policy makers had at least taken the worst-case scenario off the table", added Mr Zidle.

Meanwhile, the Senate acquitted US President Donald Trump of abuse of power and obstructing Congress.

Stocks

Japan's Topix index added 1.7 per cent as of 10.32am in Tokyo and South Korea's Kospi index gained 1.6 per cent.

Hang Seng Index rose 1.1 per cent and China's Shanghai Composite Index slipped 0.2 per cent, while Australian stocks rose 0.7 per cent.

Futures on the S&P 500 Index rose 0.2 per cent. The underlying gauge climbed 1.1 per cent on Wednesday. MSCI Asia Pacific Index advanced 1.1 per cent.

Currencies

The yen was at 109.82 per US dollar.

The offshore yuan traded at 6.9786 per US dollar, while the euro bought US$1.0997.

Bonds

The yield on 10-year Treasuries remained at 1.65 per cent, while Australia's 10-year yield gained five basis points to 1.09 per cent.

Commodities

West Texas Intermediate crude increased 1.5 per cent to US$51.47 a barrel. Meanwhile, gold was steady at US$1,556.39 an ounce.

BLOOMBERG