Asian markets were mostly up on Friday after the latest US coronavirus stimulus measures boosted Wall Street overnight.
In its latest attempt to ease the economic effects of the COVID-19 pandemic, the US Federal Reserve said that it would pump US$2.3 trillion through new lending programs.
The pandemic has hammered economies, sending governments and central banks scrambling to put together unprecedented, massive emergency measures.
The strong close on Wall Street boosted Tokyo’s benchmark Nikkei 225, which on Friday closed up 152.73 points, or 0.8 percent, at 19,498.50, surging 9.4 percent from 17,820.19 on April 3.
The market remains in a “tug-of-war between those who are pessimistic [about the pandemic] and those who are optimistic... They don’t want to miss a rare chance to buy” shares at low prices, Rakuten Securities Inc chief global strategist Mutsumi Kagawa said.
Seoul’s KOSPI on Friday also climbed, gaining 24.49 points, or 1.3 percent, to 1,860.70, a jump of 7.8 percent from a close of 1,725.44 a week earlier.
In Taipei, the TAIEX on Friday gained 38.18 points, or 0.38 percent, to 10,157.61, a 5.1 percent increase from a close of 9,663.63 on April 1, the last session of trading before the four-day Tomb Sweeping Day weekend. Turnover totaled NT$121.268 billion (US$4.03 billion).
However, the Shanghai Composite on Friday bucked the regional trend, ending down 29.27 points, or 1 percent, at 2,796.63, edging up 1.2 percent from a week earlier.
Hong Kong, Sydney, Wellington and Singapore were closed for a public holiday.
The Fed appears to be “on a mission to blow holes in every dam that stops the flow of credit,” AxiCorp Financial Services Pty chief global markets strategist Stephen Innes said. “And it sure sounds like they have plenty more dynamite if needed.”
The EU also followed the US with its own 500 billion euro (US$546.8 billion) rescue package to ease the effects of COVID-19 on the 27-nation bloc.
Millions of jobs have been shed during the pandemic, with data released on Thursday showing that 17 million people have lost their jobs in the US alone since the middle of last month.
However, investors appeared to be focusing more on the effects of the various stimulus packages and whether they would be able to achieve the stability governments are hoping for.
The latest emergency measures came as the IMF warned that 170 of its 180 members would see declines in per capita income this year.
“We anticipate the worst economic fallout since the Great Depression,” IMF managing director Kristalina Georgieva said, urging governments to provide lifelines to businesses and households alike, adding that “it could get worse.”
Additional reporting by staff writer
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