HONG KONG (Nikkei Markets) -- Asian shares outside of Japan jumped Tuesday after the U.S. Federal Reserve took another set of measures to help the economy struggling under the impact of the coronavirus pandemic.
The Nikkei Asia300 index advanced 5.4% to 1,049.07.
Appetite for risk assets rebounded in Asia after the Fed took measures in a bid to support smooth functioning of the Treasury and other credit markets. The U.S. central bank said it will purchase Treasury securities and agency mortgage-backed securities "in the amounts needed to support smooth market functioning and effective transmission of monetary policy." Additionally, it announced the establishment of two facilities to support credit to large employers and a third facility to support the flow of credit to consumers and businesses.
The unlimited quantitative easing comes less than two weeks after the Fed cut its key rate to near zero and resumed asset purchases. The Fed has unleashed the unusual measures as the coronavirus outbreak quickly spread, prompting authorities to order more than 100 million Americans to remain at home. The containment efforts have further deteriorated the economic outlook.
"The Federal Reserve is now throwing everything at financial markets," ING Bank said. "It is all about trying to mitigate the negative implication from market strains that could exacerbate the huge downside risks to economic activity which are being created by country lock downs to combat the spread of the virus."
The dollar fell against it major peers and Asian currencies on the back of the Fed easing. Treasury yields declined.
Meanwhile, the U.S. Senate failed once more to advance a fiscal stimulus bill to combat the pandemic.
On the A300 on Tuesday, China Unicom (Hong Kong) surged 10.3% after reporting an 11% increase in profit last year.
Hong Kong property developer Henderson Land Development rose 0.9% despite reporting a 45.5% drop in profit for the same period.
-- Nimesh Vora