(Bloomberg) — Asian stocks pared declines and U.S. equity futures edged higher as investors weighed signs China’s economy is recovering against the ongoing spread of the coronavirus.Stocks were down in Japan and Australia though off session lows. Shares fluctuated in Hong Kong and dipped in China, where markets reopened after a two-day holiday. S&P 500 contracts reversed early losses to trade modestly higher. South Korean shares slipped after the country’s finance minister ruled out another budget for this year. Treasuries and the dollar were steady.Investors are bracing for a continuation of last week’s risk-off sentiment as coronavirus cases surpassed 10 million globally and a resurgence in the U.S. continues to batter states likes Texas, Arizona and Florida. Providing some respite from the negative news, China’s industrial companies saw the first monthly increase in profits since November.“The recovery is going to be much slower and much more uneven than most people believe,” David Hunt, president and CEO of PGIM Inc., said on Bloomberg TV. “Markets are priced for a much sharper V-shaped recovery which we don’t think is likely.”Meanwhile, China’s central bank said it will implement new monetary tools to make sure liquidity reaches the real economy. The People’s Bank of China said it will increase the proportion of smaller company, credit and manufacturing loans, and continue to lower lending rates, while reiterating that it will keep the yuan stable.Here are some key events coming up:New York Fed President John Williams moderates a discussion with IMF Managing Director Kristalina Georgieva on Monday.On Tuesday, Federal Resserve Chairman Jerome Powell and U.S. Treasury Secretary Steven Mnuchin testify before the House Financial Services Committee.The U.S. jobs report for June on Thursday may continue data-collection issues from May that appear to understate the true scale of joblessness.Friday brings the U.S. Independence Day holiday. Markets are closed, along with government offices.These are the main moves in markets:StocksS&P 500 futures rose 0.2% as of 10:33 a.m. in Tokyo. The gauge fell 2.4% on Friday.Japan’s Topix index dropped 1.1%.Hong Kong’s Hang Seng index fell 0.3%.Shanghai Composite lost 0.3%.South Korea’s Kospi retreated 0.8%.Australia’s S&P/ASX 200 Index declined 1.3%.CurrenciesThe yen slid 0.1% to 107.32 per dollar.The offshore yuan rose 0.1% to 7.0793 per dollar.The euro bought $1.1233, up 0.1%.BondsThe yield on 10-year Treasuries remained at 0.64%.Australia’s 10-year yield was steady at 0.86%.CommoditiesWest Texas Intermediate crude oil fell 1.1% to $38.06 a barrel.Gold was at $1,771.65 an ounce, little changed.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
