Asian stocks at three-month high on wave of recovery optimism

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Equities rise as the hope of further easing in social restrictions around the world outweighs caution over coronavirus and US protests

Tokyo/New York — Asian shares vaulted to a near three-month high on Wednesday as the hope of more stimulus and further easing in social restrictions around the world outweighed caution over a host of worries from the coronavirus to growing US civil unrest.

E-mini futures for the US S&P 500 were up 0.2% in early Wednesday trade, extending the gains so far this week to 1.4%. Various high-frequency data, such as restaurant bookings and mobility data, shows activity is also gradually recovering in many developed countries after bottoming out in April. “Stock markets are betting on a V-shaped recovery in July-September. But the gap between stock market and the real economy is growing. Many corporate executives must be now wondering why their companies’ shares are rising so much,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

 

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