Fundamental Comment

Asian stocks rise after Powell, WHO statements

Asian stocks rise after Powell and WHO statements

Asian stocks rose during Wednesday's trading, following Federal Reserve Chairman Jerome Powell's statements about the Coronavirus, as well as the World Health Organization's announcement of the first vaccine for the virus.

In Hong Kong, the Hang Seng Index increased by 1.09 percent to 27,884.70, while the Shanghai Composite Index closed 0.87 percent up at 2,926.90.

 

Australia’s S&P/ASX 200 finished 0.47 percent up at 7,088.20 and South Korea’s Kospi index ascended 0.69 percent to 2,238.38.

 

Japan’s Nikkei 225 index surged 0.74 percent to 23,861.21 points, as a result to Softbank Group shares rise after a U.S. federal judge approved a merger deal between its U.S. wireless unit, Sprint and T-Mobile U.S.

 

The rise in Asian stocks during today's trading, was supported by the Fed president's remarks alongside the statements of the World Health Organization about a vaccine for the coronavirus.

 

The Fed president noted that the US Central Bank is carefully monitoring the risks of a coronavirus outbreak, adding that the negative effects on the Chinese economy are very likely to have some indirect effects on the U.S. economy.

But Powell said it was too early to say whether the impact would be enough to bring about a change in monetary policy.

On the other hand, the WHO has announced that the first coronavirus vaccine could be available in 18 months, calling for all weapons to be mobilized to counter the virus at this time.

Global Health has confirmed 42,708,000 cases of deadly virus infection, with 1,017 deaths in China. Outside the mainland, there were 393 infections and one death.

US Equities

U.S. stocks finished higher last night, where the Dow Jones Industrial Average settled at 29,276 points overnight after surpassing the 29,415-point level during the session, the highest in its history.

The S&P 500 rose 0.17 percent to a new record high of 3,357 points, and the NASDAQ added 0.11 percent to 9,638, the highest on record.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, rose 0.08 percent at 98.66, touching the highest level since June 2017 at 98.84.

Later in the day, Powell will testify on the Semiannual Monetary Policy Report before the Senate Banking Committee in Washington DC.

Share Article