· Wall Street jumps as China stimulus measures soothe virus worries
The Nasdaq hit a record high on Tuesday and the S&P 500 posted its biggest one-day gain in about six months as fears of a heavy economic impact from the coronavirus outbreak waned after China’s central bank intervened.
The Dow notched its biggest single-day rise in more than five months, as the stock market recovered from steep losses in the prior week.
The Dow Jones Industrial Average .DJI rose 407.82 points, or 1.44%, to 28,807.63, the S&P 500 .SPX gained 48.67 points, or 1.50%, to 3,297.59 and the Nasdaq Composite .IXIC added 194.57 points, or 2.1%, to9,467.97.
Data showed new orders for U.S.-made goods increased by the most in nearly 1-1/2 years in December, flattered by robust demand for defense aircraft.
The stimulus boosted investor sentiment even as fallout from the coronavirus from China is expected to deliver a short, sharp blow to both Chinese and global economic activity in the first quarter.
· Japan’s Nikkei 225 up 1.2% as Asia jumps
Asia Pacific markets traded higher on Wednesday, building on gains from the previous session, after stocks sold off recently due to worries over the new coronavirus outbreak.
Japan’s Nikkei 225 rose 1.22% in early trade while the Topix index added 1.17%. The yen, considered a safe-haven asset in times of market uncertainties, changed hands at 109.47 per dollar, weakening from levels below 108.80 earlier in the week.
In South Korea, the Kospi index added 0.98%.
Australia’s benchmark ASX 200 rose 0.67%, with most sectors trading up. The heavily weighted financial subindex rose 0.43% as major banking stocks in the country gained.
The session in Asia Pacific follows overnight rallies on Wall Street and in Europe.
“Markets have now embarked on a new rebound, spurred by China’s efforts to support its economy alongside an apparent decline in concerns over the Coronavirus impact on the global economy,” Rodrigo Catril, senior foreign-exchange strategist at the National Australia Bank, wrote in a morning note.
Reference: CNBC, Reuters
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