Domestic stock markets are likely to start Tuesday’s session on a positive note, tracking gains in Asian equities which rose to three-month highs. The Singapore Exchange (SGX) Nifty futures – an early indicator of the National Stock Exchange (NSE) Nifty 50 index – climbed as much as 70.4 points to 10,235.50 ahead of the opening of Indian markets. At 8:48 am, the SGX Nifty futures were up 57.70 points – or 0.57 per cent – at 10,222.80.
Equities elsewhere in Asia extended a rally to the ninth day in a row, as the lifting of coronavirus lockdowns in many countries fed investor hopes of a relatively quick global economic recovery.
MSCI’s broadest index of Asia-Pacific shares outside of Japan registered its longest winning streak since early 2018. It was last up 0.76 per cent at a three-month peak.
Australia’s S&P/ASX 200 jumped 2.5 per cent while Chinese shares started on a firm footing with the blue-chip CSI300 index rising 0.4 per cent. Hong Kong’s Hang Seng index climbed 1.2 per cent. However, Japan’s Nikkei benchmark was down 0.5 per cent.
Global markets have been particularly encouraged by a May US jobs report last week that showed a surprise fall in the unemployment rate, sending Wall Street indices surging with the Nasdaq hitting a record close on Monday.
The markets were battered in March as investors fretted over extent of both the short and longer term damage to the world economy from the coronavirus pandemic. But most indices are now back to pre-COVID-19 levels.
On Monday, the S&P BSE Sensex index had ended 83.34 points – or 0.24 per cent – higher at 34,370.58, and the broader NSE Nifty 50 benchmark settled at 10,167.45, up 25.30 points – or 0.25 per cent – from its previous close.