Hope for stimulus packages boost Asian stock markets

Tokyo

Reflections on a display board of the Tokyo Stock Exchange.

(Photo: AFP)

Washington / Sydney Asian equity markets rose on Thursday. The combination of a recovery in crude oil prices from historic lows and the promise of further US government aid to cushion the coronavirus-affected economy calmed investors’ concerns. The U.S. House of Representatives is expected to launch a fourth coronavirus package on Thursday, which has already been unanimously approved by Congress. The rescue package would total almost three trillion dollars. Analysts therefore believe that after the price falls, the low point has been reached.

Still, the recent recovery has been tightly focused on the big tech companies, said Seema Shah, chief strategist at Principal Global Investors. However, Shah believes market positioning could now drive markets upwards, supported by solid political momentum around the world. “Investors have built sensible cash positions that indicate that senseless selling has ended, but that investors have enough funds to take advantage of attractively valued risk assets.”

Look at the indices:

The Tokyo stock exchange was initially stronger on Thursday. The Nikkei index, comprising 225 values, was 0.7 percent higher over the course of the year at 19,266 points. The broader Topix index rose by 0.5 percent and stood at 1414 points.

The Shanghai stock exchange remained unchanged. The index of the most important companies in Shanghai and Shenzhen lost 0.1 percent. The MSCI index for Asian stocks outside of Japan rose 0.9 percent.

In Asian currency trading, the dollar remained almost unchanged at 107.76 yen and stagnated at 7.0842 yuan. On the Swiss currency, it was 0.1 percent higher at 0.9723 francs. At the same time, the euro fell 0.1 percent to $ 1.0808 and hardly changed at CHF 1.0511. The pound stagnated at $ 1.2330.

More: Read all current developments regarding the corona pandemic here.

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