Asian stock markets opened higher on Wednesday (2/12/2020) after Asian market investors responded US stimulus positively.
Nikkei index in Japan opened up 0.28%, Hang Seng in Hong Kong rose 0.29%, China’s Shanghai Composite edged up 0.05%, and South Korea’s KOSPI appreciated 0.44%.
Meanwhile, the Straits Times index in Singapore opened down 0.22% today.
While US, the Wall Street stock exchange was closed happily on Tuesday (12/1/2020). It’s happend after good news about the jumbo stimulus package and positive news about the vaccine. These news managed to calm the hearts of investors who had panicked due to the surge in Covid-19 cases in US.
The Dow Jones Industrial Average rose 185.28 points or 0.63% to 29,823.92. The S&P 500 rose 40.82 points or 1.13% to 3,662.45.
Meanwhile the Nasdaq Composite rose 156.37 points or 1.28% to 12,355.11. The three major US stock indexes are up more than 10% compared to last November.
The positive stimulus from Pfizer and Moderna
Giant sector of pharmaceutical Pfizer and Moderna are reportedly getting closer to obtaining distribution permits from the European Union.
The European Medicine Agency said it was ready to finalize the results of assessments of two companies. Respectively on December 29th, 2020 and January 12th, 2021.
The good news about this vaccine has calmed market players who are panicking due to a surge in the number of corona positive patients in the coming weeks. Because the people will gather in the middle of the Christmas and New Year holidays.
High number of positive cases in the US accelerates other stimulus
The positive cases of corona in the US itself have doubled in just a month and touched a record high of 4 million cases.
Due to the higher number of positive cases itself has caused a sense of urgency among policy officials. They to accelerate the negotiation process for the jumbo stimulus fund package program that the economy considers indispensable until mass vaccination is carried out.
US House of Representatives chamber spokesperson Nancy Pelosi and US Treasury Secretary Steve Mnuchin are scheduled to meet again to discuss a US $ 908 billion stimulus package.
The stimulus will be channeled to sectors affected by the corona virus pandemic, such as small businesses and unemployed people.
This positive news regarding this vaccine has made the boss of the US Central Bank the Fed, Jerome Powell, feeling optimistic. He was briefly reiterating the potential risks in the medium term to the US economy. Although ‘Jay’ still believes that the road to economic recovery will be long ahead.
Read now: The Differences between Pfizer and Moderna Vaccines
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