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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.

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.

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