Asian stocks cheer broad liquidity infusion with eyes on US coronavirus bill

  • Asian equities remain positive following central bank actions from Japan and India.
  • Indonesia will also issue government debt papers to rescue businesses from the virus.
  • China’s industrial profits register record slump.
  • The US House is likely to vote on the COVID-19 Bill during the US session.

The Asian leaders’ fight against the coronavirus (COVID-19) pushes the stocks to register gains during the pre-European session on Friday. Also supporting the equity gains could be the odds that the US policymakers will soon release $2.2 trillion to combat the virus.

The BOJ announced further measures as a part of its bond-buying while the Reserve Bank of India (RBI) recently announced emergency rate cuts to mark its actions. With that, Japan’s NIKKEI mark 1.85% gains to 19,050 whereas India’s BSE SENSEX rises 0.70% to pierce 30,150 by the press time.

On the broader scale, MSCI’s index of Asia-Pacific shares outside Japan also remains in green to 1.63% but the US 10-year treasury yields struggle around 0.80%.

Indonesia’s IDX can be considered as the biggest gainer with nearly 8.0% gains to 4,680 as the government showed readiness to issue bonds to help the businesses.

Further, benchmarks in China ignore the heaviest drop in industrial profits during the January-February period while Australia’s ASX 200 and New Zealand’s NZX 50 both mark losses by the time of writing.

Traders are now expected to pay close attention to the developments surrounding the US stimulus plans while virus data could offer intermediate moves. It’s important to know that the US is now the biggest victim of the deadly disease with over 81,000 cases.

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