Asian shares strengthened with constructive Chinese language information, however COVID-19 considerations stay

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By Gina Lee – Asian stocks were up in Asia on Tuesday morning, approaching the end of the last day of the second quarter of the year with gains that have not been seen since 2009.

China rose 0.47% to 11:23 p.m. ET (4:23 a.m.GMT) and 1.50%, reflecting the country reporting a better-than-expected value of 50.9 for June. The number shows a second consecutive month of growth with a manufacturing PMI of 50.6 in May.

Hong Kong rose 0.91% and retreated slightly from previous earnings after the National People's Congress Standing Committee passed national security laws earlier this day. Investors will monitor the US response. Secretary of Commerce Wilbur Ross said Wednesday that the US would suspend Hong Kong preferential treatment regulations, which include exemptions for export licenses.

Japan rose 1.59%. The country's Ministry of Economic Affairs, Trade and Industry earlier reported a 8.4% decrease in May compared to the previous month.

South Korea rose 1.38% and down under 1.46%.

The positive data from China was offset by the steadily increasing COVID 19 numbers. According to Johns Hopkins University, there were over 10.2 million cases worldwide as of June 30, and there is no impending cure.

"It is not clear in which direction the corona virus is going … but I also think there have been some realignments since we are in the quarter." So I'm somehow in the camp that any weakness is short-lived. I would think July will be a strong month for equities, ”Tom Lee, co-founder and research director at Fundstrat Global Advisors, told Bloomberg.

Meanwhile, Fed Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify before the house's Financial Services Committee later the day.

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