Asian markets gain after economic support

24 March 2020

On Tuesday, the Asian stock markets gained after the Fed will give support to the economy due to the delayed action by Congress on a $2 trillion aid package.

In Japan, the Nikkei 225 was up by around 6% while the Kospi in South Korea gained around 5% today.

Similar gains were seen in Australia and Hong Kong with the benchmarks in these countries rising by 1.9% and 3.4% respectively.

Investors were encouraged by the promise from the Federal Reserve so that the markets keep functioning.

US Futures gain

Late on Monday, the US Futures surged and the DOW Jones Industrial Average rose by 3% and was up by more than 700 points and the S&P500 Futures were up by around 3%.

The same was observed for the Nasdaq-100 Futures.

Earlier Monday, the markets closed with sharp losses again due to the number of increasing cases in the US and around the world.

Congress promises aid

White House officials are nearing an unprecedented $2 trillion deal so that the economy can be rescued from the COVID-19 pandemic and the crisis resulting from it.

Investors are more worried about the talks and President Trump suggested he wants the economy to be back up and running, urging businesses to re-open sooner rather than later.

He mentioned that he is not looking at months. This is in contrast to the situation in Europe where the UK issued a stay-at-home order as from today.

Financial Events to watch for today

13:45 Manufacturing PMI (Mar)