* Fed announces indexing approach to bond buying program
* Cyclicals lead Wall Street gains
* U.S. indexes up
By Katanga Johnson
WASHINGTON, June 15 (Reuters) - Asian stocks were set to follow a late Wall Street surge on Tuesday, after the Federal Reserve's fresh move to support financial markets through the coronavirus pandemic cheered investors.
Crude oil also rose, on signs of a recovery in fuel demand and news suggesting major oil producing nations would meet their commitments to cut output.
The Fed on Monday announced tweaks to its bond buying program, widening the range of eligible assets to include all U.S. corporate bonds that satisfied certain criteria. news came after the U.S. and other major central banks halted a steep plunge in equity markets in March through a host of fiscal and economic stimulus programs that helped restore investor confidence.
However, analysts warn markets are likely to be volatile as investors grow increasingly impatient over the pace of business re-opening from the coronavirus-induced lockdowns.
Australian S&P/ASX 200 futures YAPcm1 were up 2.46%, while {{178|Japan's NiNikkei 225 futures NKc1 rose 0.36% to be up 2.5% from the close of the underlying index on Monday.
Hong Kong's Hang Seng index futures .HSI .HSIc1 rose 1.65%.
Fears of a second wave of COVID-19 infections had earlier rocked world markets, knocking down oil prices and major global equity indices.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.03%.
Investors were spooked after China re-introduced restrictions in some areas after Beijing reported its biggest cluster of new infections since February. New cases and hospitalizations in record numbers also swept through more U.S. states. showed factories in China stepped up production for a second straight month in May, giving investors hope, but also sustained contractions in retail sales and investment, suggesting many sectors were still struggling. were able to shake off the early morning negative COVID-19 headlines from China," said Joe Saluzzi, a partner at New Jersey-based brokerage firm, Themis Trading LLC.
"I think U.S. investors are keeping a close eye on the COVID-19 data, but it will take a more pronounced uptrend in positive cases for sellers to get more aggressive," added Saluzzi.
The Japanese yen weakened 0.06% versus the greenback at 107.37 per dollar, while sterling GBP= last traded at $1.2615, up 0.10% on the day.
Crude oil swung into positive territory on improving demand and signs Organization of the Petroleum Exporting member states and allies were complying with a production cuts.
Prices rebounded after the energy minister of the United Arab Emirates voiced confidence that OPEC+ countries would meet their commitments. crude CLc1 recently rose 0.19% to $37.19 per barrel and Brent LCOc1 was at $39.89, up 3% on the day.
U.S. Treasury yields rebounded on the Fed announcement, as investors set aside concerns over the spread of the coronavirus that has boosted demand for safe-haven bonds.
Benchmark 10-year notes US10YT=RR last fell 14/32 in price to yield 0.7462%, from 0.702% on Monday.
Euro zone yields edged down as investors bought safer assets such as government bonds.
Germany's 10-year bond yield DE10YT=RR earlier was near a three-week lows at -0.45%.
The dollar index against a basket of currencies =USD fell 0.6%.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets
http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j S&P 500 market cap, daily moves
https://tmsnrt.rs/2YCDodm Asset performance vs outbreak
https://tmsnrt.rs/2YF3T1T Stocks and oil versus COVID-19 cases
https://tmsnrt.rs/3cXWNdO Asia stock markets
https://tmsnrt.rs/2zpUAr4
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