Asian markets receive huge economic support

20 March 2020

The pandemic shows no sign of slowing down and the number of countries going into lockdown is increasing daily.

This is shutting down the economy, and experts are in the dark towards knowing how long this situation will last. 

However, Asian equities finally enjoyed some much-needed gains today after a long volatile week on the global markets. 

Investors received support when a series of governments and central banks announced measures to minimize the economic fallout from the coronavirus.

Benchmarks gain in Asia

In South Korea today, the market topped by 7% and in Hong Kong, the Hang Seng climbed by 3%, to 22,356.48 points.

Australia's S&P/ASX200 added 0.6% but was more than 4% up earlier in the day. 

We also saw advances in the markets for New Zealand and other Southeast Asian markets but in Indonesia, shares fell due to the number of cases rising.

US Crude futures rise

Futures for US Crude rose by 92 cents (3.7%) reaching $26.14 a barrel. On the other hand, Brent futures rose by 57 cents (2%).

Prices gained support after the US started plans to buy Oil for its emergency reserves. 

In the last 2 weeks, US Crude and Brent have lost about 40% since the talks between the OPEC and allies broke down.

However, President Trump is considering a diplomatic push so that Saudi Arabia reduces production.

Financial Events to watch for today

19:30 CFTC Speculative positions - Various Assets