Asian markets to inch up as US stimulus talks restart

Asian shares were set to track Wall Street gains on Friday as revived hopes for a US. stimulus deal helped investors overlook weaker-than-expected jobs data and growing global coronavirus cases.

In energy markets, oil prices rallied on production shutdowns ahead of a storm in the US Gulf of Mexico and the possibility of supply cuts from Saudi Arabia and Norway.

US President Donald Trump on Thursday said talks with Congress had restarted on targeted fiscal relief, after calling off negotiations earlier this week.

House Speaker Nancy Pelosi downplayed the likelihood of stand-alone bills without more comprehensive aid, but the fact that talks had resumed was enough to lift markets.

Futures for the S&P 500 rose 0.44 per cent, Australia's S&P ASX 200 futures were 0.20 per cent higher and Japan's Nikkei 225 futures added 0.32 per cent in early Asia.

Mixed messages about stimulus will likely continue to trigger choppy markets, analysts said.

"Optimism over additional fiscal support in the US. resurfaced, but the back and forth between policymakers could see volatility linger for a while yet," said senior ANZ Research economist Miles Workman in a note.

The Dow Jones Industrial Average rose 0.43 per cent, the S&P 500 gained 0.80 per cent and the Nasdaq Composite added 0.5 per cent.

MSCI's gauge of stocks across the globe gained 0.76 per cent.

Gold also rose on stimulus hopes with the yellow metal up 0.1 per cent at $1,889.50 on Thursday and US gold futures 0.2 per cent higher at $1,895.10.

Meanwhile, the number of jobless claims in the US. came in 20,000 higher than economists expected at 840,000 showing unemployment in the world's largest economy remains historically high and recovery in the labor market losing momentum.

Additionally, the World Health Organization reported a record one-day increase in global coronavirus cases on Thursday, led by a surge of infections in Europe. Cases are also rising in about 30 out of 50 US. states including New York, once the epicenter of the US outbreak, which recently re-implemented school and business closures to stave off a second wave.

The downbeat economic data and health outlook fueled risk-off appetite for US. treasuries.

US 10-year yields dropped to 0.766 per cent, from 0.785 per cent late on Wednesday, while yields on US 30-year bonds fell to 1.569 per cent from 1.589 per cent.

Oil prices pushed higher amid hurricane-related shutdowns and possible OPEC production cuts.

Brent crude settled up $1.35, or 3.2 per cent to $43.34, after falling 1.6 per cent on Wednesday. US. West Texas Intermediate (WTI) crude added $1.24 cents, or 3.1 per cent, to $41.19 after falling 1.8 per cent on Wednesday.

The dollar index was little changed against a basket of major currencies after Thursday's session settling at 93.60.