Asian stocks jump after massive gains on Wall Street

Marco Green
March 25, 2020

Asian equities soared again on Wednesday following a blockbuster day in NY and Europe as U.S. lawmakers edge towards a mammoth stimulus package to support the world's top economy against the impact of the coronavirus pandemic.

Futures on all three major American indexes turned lower.

These were the details of the news Asian markets surge on USA stimulus hopes for this day.

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

And the gains spread into Asia, which rallied for a second straight day, with extra impetus later in the day coming from the news out of Washington. The single currency held Tuesday's gain as the region's leaders move toward their own rescue package. A Bloomberg gauge of financial conditions loosened for the first time in six sessions.

Oil prices bounced back as hopes for United States stimulus offset fears of falling global demand. The number of infections globally continues to mount as India tries to lock down as many as 1.3 billion people and numerous largest economies are slowing to a crawl.

BBC stated that the Dow Jones in the US Industrial Average saw its biggest one-day gain since 1933 on Tuesday, surging 11.4% although the deal had not yet been signed. Senior Democrats and Republicans in the divided U.S.

"The actions of monetary and fiscal policymakers should help us prevent a Global Financial Crisis-style credit crunch", Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote to investors. Still on the month, the market is down 45%.

The U.S. stimulus deal, billed as a $2 trillion package, is expected to include $500 billion in direct payments to people and $500 billion in liquidity assistance.

"When markets are falling, you get these big rallies but you shouldn't get stuck on that".

Gold ticked up 0.3% to $1,614.5 per ounce after having soared nearly 5%, its biggest gains since 2008, on Tuesday.

The Stoxx Europe 600 Index climbed 1.8%.Futures on the S&P 500 Index fell 0.4% as of 6:52 a.m.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.7 per cent with Australian shares jumping 3.4 per cent and South Korean shares gaining 3.5 per cent. Japan's Nikkei surged 4.8 per cent.

The yield on 10-year Treasuries dipped three basis points to 0.82%.Germany's 10-year yield decreased one basis point to -0.33%.Britain's 10-year yield was unchanged at 0.461%.

West Texas Intermediate crude rose 2.7% to $24.66 a barrel.Iron ore gained 2.6% to $83.01 per metric ton.Gold weakened 1.9% to $1,601.01 an ounce.LME zinc was little changed at $1,815 per metric ton.

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