The sentiment in the Asia-Pacific stock market is mainly positive. The major stock indices are rising, although one of them is lagging behind. We are talking about China's Shanghai Composite index. Yesterday, however, it showed a rapid rally on upbeat GDP data from China.
The equity markets gained support mostly from hopes for a new expanded aid package in the US. Joe Biden continues to insist on expanding the relief package that he presented last week. Tomorrow, he will be inaugurated and will officially take office. This means that he will work closely on the incentive program.
Market participants became more active as they were anticipating the approval of the stimulus package. Many analysts are sure that a more expanded financial program is likely to be adopted due to the challenging political situation in the United States. Joe Biden will definitely advocate for a large stimulus package since his credibility and reputation as a new president will largely depend on it.
Nevertheless, some experts doubt that the US government will approve such a massive rescue plan to support the economy hit by the coronavirus crisis. Joe Biden is planning to allocate as much as $1.9 trillion within this relief package. It will also include direct payments to US citizens, unemployment benefits, and funds intended to raise the minimum wage.
Apart from the stimulus program, investors are also worried about the situation around the COVID-19 pandemic. The number of new coronavirus cases is rapidly increasing every day. Some countries had to tighten the existing restrictions in an attempt to slow down the spread of the virus.
For example, more than 118 new cases have been reported in China over the past day. Notably, 106 people got infected without leaving the territory of the state. This may indicate that the country is on the verge of another coronavirus wave. Fortunately, no deaths have been reported so far.
This time, Jilin Province in the northeast of China has become an epicenter of the outbreak. Here the largest daily number of new infections is registered, in particular, 43 people. Yesterday, there were just 30 of them. This news raised worries among investors.
Japan's Nikkei 225 Index rose by 1.39%.
Shanghai Composite Index, on the contrary, sank by 0.99% and lost all the gains from the previous session. The Hang Seng Index in Hong Kong did not follow the trajectory of its counterpart and advanced notably by 2.02%.
South Korea's KOSPI has also significantly increased by 2.64%.
Meanwhile, Australia's S&P/ASX 200 index posted a moderate gain of 1.2%.
