Asia stocks make cautious gains as US-China worries slow recovery rally

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SINGAPORE (REUTERS) - Asian stocks eked out gains on Tuesday (June 2) as investors' focus on the prospects of a global coronavirus recovery won out over familiar worries about US-China relations and the depth of economic damage.. Read more at straitstimes.com.

SINGAPORE - Asian stocks eked out gains on Tuesday as investors' focus on the prospects of a global coronavirus recovery won out over familiar worries about US-China relations and the depth of economic damage.

Japan's Nikkei rose 1 per cent to its highest since late February and markets in Seoul, Taipei and Hong Kong also gained.The week had begun with a surge in riskier currencies and global equities after Trump's response to China's tightening grip on Hong Kong - with threats, not tariffs - was seen lowering the temperature of Sino-US tension.

"In the meantime, we're hanging in there...but I think we might be getting a little exhausted given the giddy heights that we're trading at." "This optimistic read for risk can only persist if measures like orders and employment continue to improve month to month," said Alan Ruskin, chief international strategist at Deutsche Bank.

Still, the unrest has dozens of US cities under curfew, racial tensions at boiling point and some analysts worrying it presents yet another hurdle to national economic recovery, or even invites a second wave of coronavirus infections. US stock futures were off 0.5 per cent in Asian trade.

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