Asia markets up on US stimulus hopes

A pedestrian walks past a quotation board displaying a share price of the Tokyo Stock Exchange in Tokyo. Image copyright Getty Images

Shares in Asia have continued a global rally, as stock markets bounce back from major losses in recent days.

Expectations are growing that US lawmakers are close to agreeing an almost $2tn plan to ease the economic impact of the coronavirus pandemic.

In the US, the Dow Jones Industrial Average saw its biggest one-day gain in almost nine decades.

The moves continue a pattern of extreme volatility on financial markets as investors grapple with the effects of the outbreak.

In morning trade Japan’s benchmark Nikkei 225 gained 5.4%, the Hang Seng in Hong Kong rose 3.3%, and China’s Shanghai Composite was up by 1.9%.

It continues a period of unprecedented volatility as markets react wildly to the economic impact of the coronavirus pandemic.

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

On Wall Street, the Dow Jones Industrial Average surged by 11.4% on Tuesday, as it saw its biggest one-day gain since 1933.

$1.8tn rescue package

Many countries are now working on stimulus packages to support their economies, but these plans have received mixed responses from investors.

In the US, congressional leaders said they were close to a deal on a relief package worth more than $1.8tn, which would include money to bailout industries that have been affected by the crisis.

Any action by the US government would follow aggressive efforts by the Federal Reserve, including its pledge to buy as much government debt as needed to soothe markets, while also lending directly to businesses.

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