BEIJING (AP) – Asian stock markets advanced Monday after the Japanese central bank promised more asset purchases to consolidate financial markets as investors turn to central bankers to support the global economy by difficulty.
The benchmark for Tokyo jumped 2.4% and Shanghai, Hong Kong and Sydney also rose.
The Bank of Japan has announced that it will buy an additional 15 trillion yen ($ 140 billion) in commercial paper and bank loans. He also raised his cap on purchases of Japanese government bonds, which he has bought for years to help stave off deflation in the shrinking and aging Japanese economy.
This is “a significant increase from the shy 2 trillion yen” in purchases announced in March, said Marcel Thieliant of Capital Economics in a report.
Elsewhere, the US Federal Reserve is more likely to announce that it will wait to see the impact of previous stimulus before taking further action, said Hayaki Narita of Mizuho Bank in a report. The European Central Bank “will likely keep its flexibility options open.”
Other events likely to move the market this week include data from the United States, China, Japan, Germany and France on inflation, trade, industrial activity and retail spending .
The Shanghai composite index gained 0.7% to 2,828.13 and the Tokyo Nikkei 225
up 2.4% to 19,722.13. The Hang Seng
in Hong Kong added 1.6% to 25,223.06.
In Seoul, the Kospi was up 1.6% to 1,919.21. The Sydney S & P-ASX 200 gained 0.7% to 5,278.30. Singapore gained 1.3%.
Investors seem to be trying to look beyond the epidemic and figure out which businesses can survive and thrive after economic conditions improve. China, where the pandemic started in December, has reopened factories and other businesses after the number of new cases fell.
Spain, Italy and Belgium have announced plans to ease restrictions and other governments, including the United States, are considering whether to reopen.
President Donald Trump, in the midst of a re-election campaign, is pressuring state governors to relax disease controls as soon as possible. Spain plans to start easing restrictions on Sunday and Italy on May 4. France will announce its plans next month.
Some US governors have started to lift closure orders despite warnings that could cause outbreaks of infections, while others, including New York Governor Andew Cuomo, say they want to see a further drop in new cases before doing so. pull back the brakes.
Wall Street ended last week on the upside after President Donald Trump signed a law to provide an additional $ 500 billion in antivirus assistance, including loans to small businesses.
US government data showed a sharp 14.4% drop in orders for durable goods.
This has added to the grim figures that weaken investor sentiment, which economists say is far too optimistic.
The S&P 500 rose 1.4% to 2,836.74. The US benchmark is down 16.2% from its February record. The Dow Jones Industrial Average rose 1.1% to 23,775.25. The Nasdaq composite added 1.7% to 8,634.52.
“Investors canceled 2020 as a shock and are taking a closer look at the landscape in 2021,” said Chris Weston of Pepperstone in a report.
They are expected to get more indicators of how this future might develop when companies like Exxon, Amazon, Microsoft, Boeing and McDonald’s start reporting quarterly results this week.
On the energy markets, US crude oil benchmark for June
delivery lost 99 cents to $ 15.95 a barrel in ecommerce on the New York Mercantile Exchange. The contract rose 2.7% on Friday to $ 16.94. Brent crude oil, used to assess international oil prices, fell 17 cents to $ 24.64 a barrel in London. It added 0.5% the previous session to $ 21.44 a barrel.
The dollar remained unchanged at 107.49 yen. The euro
stable at $ 1.0823.