HONG KONG: Asian and European equities shot higher Tuesday (June 16) as growing fears about a possible second wave of infections was overshadowed by the US Federal Reserve's launch of a massive programme to support Main Street businesses hit by the virus lockdown.
A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo, Tuesday . Asian shares have tracked a rally on Wall Street spurred by the US Federal Reserve's latest promise to support markets battered by the coronavirus pandemic. - AP
Investors were also taking heart from reports the US is eyeing a huge infrastructure stimulus as well as the easing of lockdowns around the world, with several European countries opening their borders and British shops trading again. The plan is part of a massive financial backstop put in place by the bank to protect the economy from the worst of the virus crisis. The government has also pledged trillions of dollars in stimulus support.
The announcement saw all three main indexes on Wall Street reverse early losses to end well up, and the gains filtered through to Asia. Mumbai, Taipei and Manila were also more than one per cent up, Jakarta 3.2 per cent higher and Bangkok 2.5 per cent up. Wellington edged up 0.8 per cent."With the Federal Reserve back in business backstopping corporate credit, and printing money to lend to companies directly, it was immediately back to business-as-usual for the peak-virus, buy everything herd," said OANDA's Jeffrey Halley.
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