This morning, stock markets in the Asia-Pacific region showed the growth that followed after yesterday's uncertainty. Moreover, in some sectors, it even turned out to return to the previous positions which were lost after the decline. This time, the reason for the enthusiasm was the statement by the trade adviser Peter Navarro and the US President Donald Trump himself, regarding the extension of the trade agreement between Washington and Beijing. First, information appeared that America was ready to take extreme measures and sever all trade relations with China. However, Trump later denied this, saying that all obligations remain the same and no one is going to review the first stage of the agreement. Of course, investors were relieved and began to work more actively in the market.
China's Shanghai Composite Index is up by 0.11%. This is followed by the Shenzhen Component Index, which increased by 0.12%. Thus, they both were able to return everything that they had lost earlier.
Hong Kong's Hang Seng Index rose by 0.86%.
Japan's Nikkei 225 Index was the biggest gainer this morning which rose to 1.11%.
The South Korean KOSPI index jumped to 0.54%.
Australia's ASX 200 index is up by 0.21%.
In general, Asian stocks hastened to start its growth after the stock exchanges of the United States of America closed positively.
Recall that the main Wall Street indices closed yesterday with good growth, which was mainly provided by the technology sector. Investors expected the state to continue its stimulus policy. In addition, market participants almost ignored signals of a worsening epidemiological situation in the state and in the world as well. Recall that over the past weeks, new outbreaks of COVID-19 began to be actively recorded, which could potentially escalate into the second wave of the pandemic. However, in New York, quarantine measures are gradually being lifted, which does not allow investors to completely succumb to a panic that could be triggered by a record number of infections in the southern states of the country.
The government hastened to make a statement that the entire situation with the spread of coronavirus infection was taken under control and a second wave of the pandemic in the United States was not expected. Therefore, the government is not going to reintroduce any restrictive measures in the state.
Even more positive added to the market participants hopes that the country's main regulator will continue its soft stimulating policy. It was expected that a draft law on infrastructure with a total value of $ 1.5 trillion would be ratified. The presidential administration also made it clear that a new portion of the stimulus was being prepared, which would be announced very soon.
Thus, there was much more positive for investors than negative factors. This was reflected in the growth in the stock markets.
The Dow Jones index rose by 0.59% yesterday and went on the line of 26,024.96 points. The S&P 500 index gained 0.65% and reached 3 117.86 points. The Nasdaq index showed the biggest increase by 1.11% and reached the level of 10 056.475 points. It should be noted that for the fourth time this month, Nasdaq closes with record highs, and the rise generally lasts seven trading sessions in a row.
