The Asia-Pacific stock markets moved on to building major indexes on Monday. The positive dynamics were due to satisfactory forecasts on the global economy's growth and recovery. However, this growth is limited by the rapid increase in the number of COVID-19 cases around the globe, which may hinder prospects of an immediate return to pre-crisis levels.
Market participants are waiting for statistics that will reflect changes in China's GDP for the period of April to June this year. Meanwhile, investors are interested in the report on the foreign trade balance, production, and level of investment. In addition to the PRC, Singapore will also present its statistics on the level of GDP, which also arouses the curiosity of traders. Most experts are sure that serious negative changes in the global GDP level for the second quarter of this year should not occur since it was then that the Chinese economy opened after quarantine under COVID-19, and it is known to be the second-largest economy in the world. At least, no extremely negative factors indicating a decline have yet been found.
Other important events expected this week will be the meetings of the Central Bank of some countries of the world, including the main regulators of Japan and Europe, which are also closely focused on the views of investors. Market participants are aware of the coming reporting season which may result to be very unexpected.
Japan's Nikkei 225 Index gained 2%. The securities of the automaker Mazda Motor took the lead increasing immediately by 8.4%. Other companies in this sector also showed very good results.
The China Shanghai Composite Index went up 2.1%. It was followed by the Hong Kong Hang Seng Index which rose to 1.4%. The largest gains here were recorded at Geely Automobile Holdings, whose stock price rose immediately by 8.9%.
The Kospi South Korea Index also supported positive momentum and added 1.7% to the previous level. Here, electronics manufacturers have become growth leaders: Samsung Electronics Co. Securities began to cost more by 1.7%, shares of Sharp Corp. increased in price by 2.4%, while LG Electronics rose by 1%.
Australia S & P / ASX 200 also went up by 0.9%. The value of shares in the world's largest mining companies BHP Group and Rio Tinto first went up by 2%, and then followed by 1.8%.
The US stock exchange also went on a positive trend. The main indices are increasing, mainly due to the news about the successful testing of the vaccine against coronavirus infection. Particularly noteworthy is the rise in the Nasdaq index, which again crossed the border of its record level, which was the third significant growth in a row.
On Friday, pharmaceutical company Gilead Sciences Inc. from the United States of America issued a statement stating that the trials of a vaccine against coronavirus infection, which can reduce the death rate from the virus by 62% in the most severe cases of the disease, have been successfully passed. In addition, another vaccine, which is a joint development of the American and German companies, is also actively preparing to receive all the necessary certificates from the official authorities in order to be used for treatment in medical institutions. According to preliminary forecasts, it is expected to be approved for use in December this year.
Coronavirus statistics in the United States and other parts of the world remain not so encouraging at all. Last Friday, 63,000 new infections were recorded in America alone. This totals to approximately 3.1 million infected cases with 133,000 fatalities.
The situation is strained by clarifying the sanctions list submitted by official US authorities. In the latest reports, three more officials of the PRC were accused of reprisals against the Uyghur population, which is part of the state. Chinese colleagues hastened to answer that they also intend to take appropriate measures in relation to the United States. All this indicates a new wave of escalation of the conflict between the countries, which may undermine the positive mood of investors.
American economic statistics are also making adjustments. Thus, the PPI index, which reflects the level of producer prices, over the past month decreased by 0.2% compared with the previous period with an increase of 0.4%. At the same time, preliminary forecasts of analysts, which indicated that an increase of 0.4% should also have occurred in June, did not materialize.
The Dow Jones Industrial Average index rose 1.44% or 369.21 points, which allowed it to rise to a mark of 26,075.3 points.
The Standard & Poor's 500 Index gained 1.05% or 32.99 points and was at 3,185.04 points.
The Nasdaq Composite Index jumped 0.66% or 69.69 points, which moved it to the area of 10 617.44 points.
Stock markets in Europe are also on the wave of positive. Growth is recorded in all major areas. Market participants are waiting for the next batch of statistics on the level of economic growth. However, growth here remains under the pressure of a false epidemiological situation in the world. The bullish trend, although it became apparent, could not be fully developed, since the spread of coronavirus infection continues to be recorded.
In addition, investors are waiting for new statistics from the largest companies, which are expected to be released this week, as the reporting period begins.
Another important event will be the ECB meetings and the summit of the Eurozone leaders. The plans of these events include discussion of the creation of an EU economic support fund of 750 billion euros. Recall that the creation of such a regulator has been negotiated for a long time, but until the matter has moved forward, there are no definite and clear agreements.
The overall index of large enterprises of the European region Stoxx Europe 600 increased by 0.76% and was within 369.6 points.
The UK FTSE 100 index rose 1.21%. The German DAX Index also went up by 1.12%. The French CAC 40 index showed a positive trend at 0.9%. The Italian FTSE MIB index added 0.57%. Spain's IBEX 35 index managed to increase by 1.21%.
