Stocks rise on hope that worst of economic plunge has passed
TOKYO (AP) — Asian shares surged Friday on optimism the worst of the economic fallout from the pandemic may be over, as Wall Street logged its biggest rally in a week.
Japan's benchmark Nikkei 225 jumped 2.6% to 20,179.09 in afternoon trading, helped partly by local media reports about fresh government aid to ride out the pandemic. South Korea's Kospi added 1.1% to 1,948.95. Australia's S&P/ASX 200 rose 0.7% to 5,403.00. Hong Kong's Hang Seng gained 1% to 24,220.65, while the Shanghai Composite picked up 0.7% to 2,892.80.
India's Sensex gained 1.4% to 31,893.36. Shares were mixed in Southeast Asia.
Japanese media reported that the ruling Liberal Democratic Party plans to offer subsidies to help small and medium-size businesses cover their rent. Businesses are facing serious hardships during a state of emergency, continuing at least through the end of this month, which requests stores to close and people to stay home.
On Wall Street, the S&P 500 climbed 1.2% for its third gain in four days, following similar increases in European markets. Other areas of the market were still showing much more pessimism, though, including bonds.
“Plenty of dark clouds out there, but we have gone through pretty tempestuous economic times before, and this, too, shall pass,” Stephen Innes, chief global markets strategist at AxiCorp, said in a report.
“This is a policy-induced downturn, and the speed and structure of the recovery could track a different path from previous recessions. The bounce-back will be much quicker.”
In Japan, hopes for treating the outbreak are gradually growing with the quick approval of remdesivir, a drug from Gilead Sciences, also approved recently in the U.S.. It has shown promise against other coronaviruses in the past.
In China, where the...
