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Asian markets trading in green as US reaches deal

Asian markets trading in green as US reaches deal

Markets in Asia are trading in the green after the US congress reached a $2tn package to support the economic fallout.

Singapore’s Straits Times Index was up 81.2 points, climbing 3.44% by midday. The Republic’s largest transport firm ComfortDelGro edged 0.7% higher, while aviation service provider SATS gained 9.52%.

In Japan, the Nikkei 225 jumped 8.04%, extending gains from Tuesday. The Topix Index was up 91.52 points, while the Tokyo Fudosan was trading 19.76% higher. Japan’s central bank has so far injected more than $9bn into its equity market in March. 

China’s CSI 300 rallied 2.67%, with the Shanghai and Shenzhen Composite climbing 2.21% and 2.71% respectively. In Hong Kong, the Hang Seng Index advanced 3.05%.

South Korea’s Kospi gained 5.68%, after closing at 1,668.19 on Tuesday. Korea Steel Shapes surged by 30%, while Jin Air gained 29.9%.

The South Korean government has committed to further loosen key capital flow rules to encourage domestic financial institutions to supply more liquidity.

Australia’s S&P/ASX 200 closed up 5.54% on Wednesday, in anticipation of the US congressional bailout package.

India’s Nifty 50 extended gains from Tuesday, trading up 1.39% by Wednesday afternoon.

Overall, the MSCI Asia ex-Japan rallied then closed at 5.34%.

The US stock market shifted into reverse gear, with the three major indexes rebounding to new highs.

The Dow Jones Industrial Average closed at 20,704.91, 11% higher on Tuesday, recording its biggest one-day percentage gain since 1933.

The S&P 500 closed up 9.4%, registering its best performance since late 2008. Similarly, the Nasdaq Composite reached a new high of 8.1%.

In the UK, the FTSE 100 rose 9.05% by the close. This was the index’s second biggest daily gain recorded.

Global markets remain volatile however, with performances hinging on government stimulus packages and the spread of Covid-19.