ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Markets

Asia stocks rise after Wall Street jump and India rate cut

G-20 leaders' commitment brings relief as investors shake off jobless data

A woman wearing a face mask walks past a screen showing Nikkei stock average in Tokyo on March 27. (Photo by Shihoko Nakaoka)

TOKYO -- Asian stocks gained on Friday, taking their cue from a rise in the U.S. that reflected investors' enthusiasm for a big economic stimulus to fight the coronavirus crisis.

Japan's Nikkei average index closed up 3.9% to 19,389, with demand for stocks including medical equipment maker Telmo, SoftBank Group, and semiconductor manufacturing equipment maker Tokyo Electron.

Indian stocks received a boost after the Reserve Bank of India cut rates by 75 basis points to 4.4% in an emergency move to counter the economic consequences of the coronavirus pandemic. The benchmark BSE Sensex stock jumped 3.8% or 1,142 points to 31,088, though it later gave up some gains to trade at 29,676, or 0.9% lower than the previous day.

South Korea's Kospi index closed up 1.9%, Hong Kong's Hang Seng Index rose 0.6%, while Taiwan's benchmark fell 0.4%.

Asia largely followed the lead of Wall Street, where the Dow Jones Industrial Average climbed 6% to 22,552, marking the best three-day run for U.S. stocks since the 1930s. Federal Reserve Chairman Jerome Powell said on Thursday that the Fed was "not going to run out of ammunition," in an interview with American media.

Despite the fact that a record 3.28 million people in the U.S., the globe's latest COVID-19 epicenter, applied for unemployment benefits in the week ended Saturday, investors have high hopes for the $2 trillion stimulus that the Senate approved.

The package allocates $349 billion in loans to small businesses, $500 billion for loans, loan guarantees or other aid to businesses, and $58 billion in the form of loans and loan guarantees to passenger airlines.

On Thursday, Group of 20 the leaders also held a teleconference and agreed to inject over $5 trillion into the global economy and committed to do "whatever it takes" to overcome the pandemic.

The commitment by leading industrialized and emerging economies "showed their strong attitudes to respond the pandemic together, and this gave investors a sense of relief," said Hideyuki Ishiguro, senior strategist at Daiwa Securities.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more