Asia stocks rebound, hopes of more stimulus offset virus worries

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Asian shares eked out gains and U.S. stock futures bounced back on Friday as hopes of more government spending around the globe suppressed concerns about rising new coronavirus case numbers and worsening tensions between Washington and Beijing.

MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5%, paring a quarter of its 2% losses the previous day, while Japan’s Nikkei was almost flat.

“The sustainability of this rebound will be determined to a large degree by whether another fiscal deal is reached,” said ANZ bank analysts in Sydney in a note. “But we now see higher risk of a market correction, considering the improvement in hard economic data we have seen over the past couple of months is likely to halt,” he said.

Kicking off technology sector results, Netflix skidded 9.0% after the bell as the company posted slower subscriber growth than Wall Street’s high expectations and forecast a further slowdown in the pace of expansion in the current quarter.

 

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