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Asian markets set to push higher after overnight gains
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A man stands in front of an electronic board showing Japan’s Nikkei average outside a brokerage firm in Tokyo on Thursday. The Nikkei closed at its lowest in nearly seven months on Thursday with chip-related stocks suffering after a rout in tech stocks inflicted the largest daily decline on Wall Street since 2011. (-/Kim Kyung-Hoon)
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sian markets look set to rise on Tuesday, building on newfound momentum after bargain hunters helped a recovery in US markets after last week’s selloff.
Australian S&P/ASX 200 futures were up 0.64 percent in early trading, while Japan's Nikkei 225 futures rose 0.21 percent. Hong Kong's Hang Seng index futures were up 0.61 percent.
E-mini futures for the S&P 500 were up 0.16 percent.
Asian markets have been buoyed by positive signs around China’s economic recovery, although the coronavirus pandemic continues to wreak economic havoc globally and raise concern about high valuations.
Investors will remain cautious ahead of the first US presidential debate set to take place later on Tuesday, and as lawmakers continue sporadic efforts to cobble together additional economic stimulus.
US consumer confidence and home price data is also due on Tuesday. Upcoming US economic data should help show how well the country is positioned to rebound from pandemic lockdowns, and how necessary more stimulus will be.
“Globally, a loss of momentum and the renewed rise in COVID-19 infection rates points to the need for additional fiscal and monetary support. That policy outlook is continuing to provide a supportive backdrop to equities despite recent volatility,” wrote ANZ Bank New Zealand in an analyst note.
US traders posted strong gains on Wall Street on Monday, particularly in hard-hit sectors like hotels, banks and airlines which posted sizeable gains after several days of decline.
On Wall Street, Dow Jones Industrial Average rose 1.51 percent, the S&P 500 gained 1.61 percent, and the Nasdaq Composite was up 1.87 percent.
MSCI's gauge of stocks across the globe gained 1.68 percent, while the STOXX 600's banking stock index was up 5.6 percent, after hitting a fresh all-time low on Friday.
But there were still some signs of caution, as Europe is experiencing a rise in new COVID-19 infections and some US states continue to grapple with high case numbers.
Safe-haven spot gold added 1.2 percent at US$1,881.49 an ounce. US gold futures gained 0.89 percent at $1,874.30 an ounce.
But the US dollar dropped from a two-month high against a basket of currencies Monday, with the dollar index falling 0.3 percent, its biggest daily percentage drop in roughly three weeks.
The weakening US dollar helped drive up oil prices. Brent crude settled up 51 cents to $42.43 a barrel, or 1.22 percent. US West Texas Intermediate settled up 35 cents at $40.60 a barrel, or 0.87 percent.
US Treasury yields were largely flat, with no fresh data or issuances shaking up the market. The benchmark 10-year yield was up 0.2 basis point on the day at 0.661 percent.
