· Asian stocks rose to a seven-week high on Thursday, boosted by encouraging early results from a COVID-19 treatment trial, though bonds and currencies stuck to cautious ranges ahead of a European Central Bank meeting later in the day.
A 1.4% rise in MSCI’s broadest index of Asia-Pacific shares, excluding Japan, .MIAPJ0000PUS has it tracking toward a weekly gain of more than 5%, its best in three weeks.
Optimism in equity markets was driven by positive partial results from a trial of Gilead’s (GILD.O) antiviral remdesivir, which showed the drug could help speed recovery from COVID-19, the respiratory disease caused by the new coronavirus.
· Singapore’s DBS bank posts 29% fall in first-quarter net profit
Southeast Asia’s largest bank, DBS, on Thursday said it set aside 1.09 billion Singapore dollars ($772.5 million) to cover potential losses from the coronavirus pandemic — which resulted in a 29% year-over-year fall in net profit in the first quarter.
The Singaporean bank’s net profit fell to 1.17 billion Singapore dollars ($829.2 million) in January-March this year, down from 1.65 billion Singapore dollars ($1.17 billion) in the same period last year.
· Japanese stocks scaled near eight-week highs on Thursday, tracking Wall Street’s overnight rally on promising early trial results of an experimental COVID-19 treatment, as well as on solid tech earnings and a surge in oil prices.
The Nikkei volatility index, considered a fear gauge based on option pricing, dropped 11.2% to an eight-week low of 29.6, reflecting a decline in investor anxiety.
U.S. stocks surged on Wednesday on hopes for a COVID-19 treatment as the top U.S. infectious disease official said a government study found that Gilead Sciences’ antiviral, remdesivir, had a clear effect in cutting the time patients need to recover.
The broader Topix gained 1.5% to 1,470.73 by the midday recess, with all but five of the 33 sector sub-indexes on the Tokyo exchange trading higher.
· China stocks rallied on Thursday to post their biggest monthly advance since December, after positive trial results for a drug to treat COVID-19 and downbeat data reinforced hopes of further stimulus to bolster the world’s second-largest economy.
The blue-chip CSI300 index ended up 1.2% at 3,912.58, while the Shanghai Composite Index closed 1.3% higher at 2,860.08.
· European markets whipsawed Thursday morning as investors reacted to news of a potentially effective coronavirus treatment while monitoring corporate earnings and economic data.
The pan-European Stoxx 600 quickly gave up early gains to slide 0.2% in early trade. Bank stocks fell 2.2% to lead losses while household goods added 0.9%.
· Thai exports, tourism to slow until early next year amid outbreak: Deputy PM
BANGKOK (Reuters) - Thailand’s exports and tourism, key drivers of growth, are expected to slow until early next year due to the impact of the coronavirus pandemic, a deputy prime minister said on Thursday.
The impact started to be felt in the first quarter, but “in the second quarter, the economy is clearly stagnating,” Somkid Jatusripitak told reporters.
Reference: CNBC, Reuters
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