Stocks in Asia jumped in Tuesday afternoon trade. It caused by the authorities ramped up stimulus measures to combat the economic impact of the global coronavirus outbreak.
According to cnbc.com, Japan’s Nikkei 225 was among the region’s major markets that the saw the largest increase. It surged 4.86% in afternoon trade as shares of index heavyweights Fast Retailing and Softbank Group soared 9.64% and 16.1%, respectively, while the Topix rose 1.68%.
Stocks in Asia showed the data. In South Korea, the Kospi rose 5.26%. Hong Kong’s Hang Seng index also jumped 3.56%, with shares of Chinese tech juggernaut Tencent gaining 3.39%.
Mainland Chinese stocks also saw gains by the afternoon, with the Shanghai composite up 1.48% while the Shenzhen composite added 1.081%. Meanwhile, shares in Australia advanced, with the S&P/ASX 200 up around 1.5%. Overall, the MSCI Asia ex-Japan index rose 3.51%.
The U.S. Federal Reserve announced an open-ended asset purchase program on Monday. The central bank said the program will run in the “amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
Ray Attril, head of foreign exchange strategy at National Australia Bank, wrote in a note from cnbc.com,
“The Fed has committed to buying debt, not just government and residential mortgage backed securities. But now, for the first time, commercial mortgages (paper backed by office buildings and the like).”
“Unlike during the post (global financial crisis) when there were quantitative limits on how much the Fed would buy each month, purchase amounts are now unlimited,” Attrill said.
Oil prices were up in the afternoon of Asian trading hours. With international benchmark Brent crude futures 2.22% higher at $27.63 per barrel while U.S. crude futures added 3.13% to $24.09 per barrel.