Asian equities markets surged Tuesday as traders bet the U.S.Federal Reserve’s promise of unlimited dollar funding would ease painful pressured in monetary markets even when it couldn’t stop the economic blow of the coronavirus pandemic.
While Wall Street appeared unimpressed, traders in Asia had been encouraged to lift E-Mini futures for the S&P 500 by 4.2% and Japan’s Nikkei surged 7.13%, its greatest daily surge since February 2016.
The prospects for Tuesday’s European session additionally appeared brighter as EUROSTOXX 50 futures and FTSE futures each surged 4.9%.
MSCI’s broadest index of Asia-Pacific stocks outside Japan leaped 4.9%, to more than half Monday’s plunge.
South Korea’s ravaged market hiked 8.6% after the government doubled a planned financial rescue package to 100 trillion won ($80 billion).
K2 Asset Management chief of research George Boubouras stated despite gains Tuesday in Asian equities and financial market sentiment remained bicker even as the co-ordinated stimulus moves had been implemented around the globe.
Central banks and governments, he stated, needed to implement ‘bold and modern’ financial and fiscal policies to stave off the chance of a damaging credit crunch hitting global monetary systems.
Macquarie Wealth Management divisional director Martin Lakos stated the speed of the equity market drop made the current sell-off arguably worse than the 2008 financial crisis.