Asian stocks were mostly high on optimism on Thursday. The US stimulus may come after all, as President Donald Trump overturns his earlier decision to halt negotiations on another economic rescue effort.
Japan’s benchmark Nikkei 225 rose 0.9% to 23,636.35. South Korea’s Kospi rose 0.2% to 2,391.63. Australia’s S&P / ASX 200 jumped 1.4% to 6,119.20. Hong Kong’s Hang Seng closed 0.8% down at 24,048.48. Trade was closed for vacation in Shanghai.
Rikki Ogawa of Mizuho Bank in Singapore said that there remains considerable uncertainty over the “rollercoaster” swings in investor mood in response to Trump’s signals about the stimulus.
“The nature of the discussion on fiscal stimulus hardly inspires lasting confidence,” Ogawa said, noting such uncertainty would continue through the presidential election campaign, and perhaps even after the vote.
The S&P 500 climbed 1.7% to 3,419.45 after Trump’s series of tweets late on Tuesday said he was open to sending $ 1,200 payments to Americans, and to running the airline industry and small businesses For limited programs.
The tweet came just hours after Trump sent the market with his manifesto stating that his delegates should stop talks with Democrats on an effort to broaden the economy after the election, saying that Speaker of the House Nancy Pelosi had negotiated in bad faith.
The stakes are high, as economists, investors and the Federal Reserve chair all say the economy needs another dose of support after the end of Congress’s weekly unemployment benefit and other stimulus approved earlier this year .
The Dow Jones Industrial Average rose 1.9% to 28,303.46. The Nasdaq Composite rose 1.9% to 11,364.60 despite calls from Democratic lawmakers for Congress to rein in Big Tech companies and other indices.
The proposal, which follows a 15-month investigation by a House Judicial Committee panel, made it harder for Amazon, Apple, Facebook and Google’s parent company to acquire other companies and implement new rules to secure competition Can make
Nevertheless, much of the market’s focus is on prospects for more stimulus for the economy than Washington.
Airlines trumped some big gains throughout the day after Trump soloed the industry, giving Congress $ 25 billion in approval for “IMMEDIATELY”. The S&P 500 grew widely, with technology shares leading to the biggest gains. Other sectors that would benefit the most from a strong economy were also climbing, including retailers and travel-related companies.
Small stocks also grew higher than the rest of the market, indicating growing optimism about the economy’s prospects. The Russell 2000 index of small-cap stocks climbed 33.75 points, or 2.1%, to 1,611.04.
The 360-degree spin for Wall Street in less than 24 hours is the latest bump in its volatility since the beginning of last month. Investors are also concerned about whether the continuing epidemic will prompt governments to impose more restrictions on businesses. Tensions between the United States and China are still increasing.
In energy trading, the benchmark US crude added 3 cents to $ 39.98 a barrel. International standard Brent crude rose 9 cents to $ 42.08 a barrel.
The US dollar closed down 106.00 Japanese yen from 106.06 Japanese yen on Wednesday. The euro costs $ 1.1766, up slightly from $ 1.1763.