Asia markets rise after United States stimulus package agreed

Asian Stocks Soar On the Back of Imminent U.S. Stimulus Package

Asian Stocks Soar On the Back of Imminent U.S. Stimulus Package

Stocks surged globally while US equity futures fluctuated on Wednesday as investors weighed evolving government rescue packages to counter the hit from the coronavirus, after one of the best days on Wall Street in a generation.

Asian shares likewise obtained in Wednesday trading, with Japan's standard Nikkei 225 index up 7.9% complying with the information.

The Canadian dollar traded for 69.16 cents USA compared with an average of 69.05 cents U.S. on Monday. "That has prompted hedge funds to cover their short positions", said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

The Dow Jones industrial average climbed as much as 1,315.02 points, or 6.3 percent, after lawmakers reached an overnight deal for a giant spending package that will send checks directly to millions of Americans, even as it bails out virus-stricken industries ranging from airlines and insurers to restaurants and hotels.

In metals markets, gold changed hands at $1,608.78 an ounce, retaining most of Tuesday's gains of nearly 5 per cent, its biggest jump since 2008.

Top aides to Republican President Donald Trump and senior Senate Republicans and Democrats said they had agreed on the unprecedented stimulus bill, which includes a $500 billion fund to help hard-hit industries and a comparable amount for direct payments of up to $3,000 apiece to millions of USA families.

Investor fears about a sharp economic downturn appear to be easing somewhat after the U.S. Federal Reserve's offer of unlimited bond-buying and programs to buy corporate debt. "At the macro level, policy keeps evolving, and the economic data we know is going to be bad, but magnitudes are a wild card and there is little certainty on duration".

President Trump indicated Tuesday that he wants to accelerate the comeback, saying he wants the country "opened up and raring to go" by Easter.

Trials for coronavirus vaccine could start next month in the UK
The drugs will be tested to see if they are safe and effective when added to the usual standard of care. The trials use an adaptive design, which means it can test new treatments as they become available.

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

In the currency market, the dollar has slipped as a greenback liquidity crunch loosened slightly. Wall Street also teetered though it mostly remained more than 1 per cent higher.

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.

This month alone has seen the Dow having the five biggest daily gains and five biggest falls of its 135-year history.

Investors are seeing US and global equity indexes posting their first consecutive daily gains since just before the rout began a month ago, even as economies from Milan to Seattle reel from the deepening pandemic.

Oil prices steadied as hopes for USA stimulus offset fears from falling global demand.

U.S crude futures rose 4% to $24.96 per barrel.

WTI crude oil climbed toward $25 a barrel in NY.

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