President Donald Trump and the US Senate have agreed an economic relief package worth more than US$ 1.8 trillion, sending Asian shares higher.
Markets had rocketed on Wall Street and in London on Tuesday in anticipation of a deal being struck.
On Wednesday, Japan’s benchmark Nikkei 225 index was up 7.9% following news of the relief deal.
The stimulus package includes money to bail out industries that have been affected by the crisis.
n the US, the Dow Jones Industrial Average saw its biggest one-day gain since 1933 on Tuesday, surging 11.4% although the deal had not yet been signed.
In Asia, the Hang Seng index in Hong Kong rose 3.1%, and China’s Shanghai Composite was up by 2% in Wednesday’s trading session.
“It’s good news, but we’re not out of the woods yet, “ said Tom Stevenson, investment director at fund manager Fidelity International.
“When markets are falling, you get these big rallies but you shouldn’t get stuck on that. They do bounce around in these situations.”
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.
(BBC)
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