Economy

Coronavirus-Asia markets rise as USA agrees stimulus package

Coronavirus-Asia markets rise as USA agrees stimulus package”

"But once it is approved the question is how it is implemented", said Jason Teh, chief investment officer at Vertium Asset Management in Sydney.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent with Australian shares rising 4.5 percent and South Korean shares gaining 4.0 percent.

And the gains of recent days still leave global markets way below the peaks seen in February.

The Dow Jones Industrial Average rose 2,112.98 points, or 11.37 per cent, to 20,704.91, the S&P 500 gained 209.93 points, or 9.38 per cent, to 2,447.33 and the Nasdaq Composite added 557.18 points, or 8.12 per cent, to 7,417.86.

But investors are braced for a deep global recession due to sweeping lockdowns in many countries.

US S&P500 is still down nearly 28 per cent from its record peak hit just over a month ago.

"I suspect the outlooks have sunk in among market players already and that the bear market has run about 80 per cent of its course for now".

The Dow registered its biggest one-day percentage gain since 1933 on Tuesday after USA lawmakers said they were close to a deal for an economic rescue package, injecting a shot of optimism into markets reeling from the biggest selloff since the financial crisis.

The US rescue package adheres to 5 days of extreme arrangements to attempt to concur a bargain that will certainly offer help for American employees as well as companies. "The longer this drags on, the more likely we will need to adjust to a new normal".

The biggest uncertainty now is how countries can slow the pandemic and how quickly they can lift various curbs on economic activity.

U.S. President Donald Trump pressed his case for a re-opening of the U.S. economy by mid-April.

In the currency markets, the dollar slipped for a third straight session as the scramble for liquidity was soothed again by the super-sized USA stimulus plan.

And the gains spread into Asia, which rallied for a second straight day, with extra impetus later in the day coming from the news out of Washington.

Confirmed cases are now topping 400,000 globally with New York City suffering another quick and brutal rise in the number of infections to about 15,000.

With traders moving gradually away from safety bolt holes, the Japanese yen eased to 111.34 yen per dollar to leave it just off a one-month low.

Gold soared nearly 5%, its biggest gains since 2008, on Tuesday and last stood at $1,633, in part helped by concerns lockdowns in major producer South Africa could disrupt supply.

The benchmark index has now recovered its losses from mid March on the back of extraordinary fiscal and monetary stimulus from Europe and the U.S.

These were the details of the news Asian markets surge on USA stimulus hopes for this day.

The crude market - which has been hammered by the outbreak's impact on demand, as well as a price war between Saudi Arabia and Russian Federation - also enjoyed a much-needed lift, though analysts cautioned the commodity still faced uncertainty.

USA crude futures rose 1.8 percent to $24.45 per barrel. That is up about $5.5, or about 26%, from their 18-year intraday low of $19.46 touched on Friday.



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