Hong Kong: The Asian market welcomed Joe Biden’s first day as President of the United States. It surged on Thursday because investors were optimistic about his economic plan and Kovic’s recovery plan.
Soon after Biden was sworn in, he signed more than a dozen executive orders, revoking some of his predecessor’s policies, including rejoining the World Health Organization. Observers say that the organization will join the ranks of the World Health Organization, which will help fight this devastating disease.
He also signed the “Paris Climate Agreement”, extended the moratorium on mortgage foreclosures, and suspended student debt repayment.
On this occasion, the new government hopes to provide the world’s top economies with a relief package of US$1.9 trillion, including a cash payment of US$1,400 to troubled Americans.
Investors have welcomed Biden’s election and his pledges to kickstart growth, which has offset concerns about his plans for higher taxes and market regulation.
In his inauguration address, Biden pledged to “rebuild the economy” and “rebuild the backbone of the country: the middle class”.
His pick for Treasury secretary, Janet Yellen, provided a jab in the arm for markets on Tuesday by reasserting her determination to drive through the stimulus package, telling lawmakers to “go big” if they wanted to rescue the economy.
There is also a hope that he will devote more time to fighting the coronavirus, which has killed more than 400,000 people in the United States and two million worldwide.
All three main indexes on Wall Street surged to record highs, and Asian investors took up the baton with relish.
Since April 2019, Hong Kong has risen for the sixth consecutive day, breaking through 30,000 points.
Tokyo, Shanghai, Sydney, Seoul, Singapore, Taipei, Jakarta and Wellington also rose, although Manila and Bangkok fell.
“Stock markets continue to reflate post-inauguration with the consensus view now that… Biden’s early focus will be more on growth than tax hikes,” said Axi strategist Stephen Innes.
“The market is also seeing through longer lockdowns on the premise that Covid vaccinations will lead us out of the pandemic quickly.”
Hopes for Biden’s recovery plan have cast a shadow over concerns about the surge in virus cases and the spread of more infectious strains, which makes the government feel a headache when fighting to pierce the crowd.
Biden has promised to vaccinate 100 million people in the first 100 days. Analysts say that the new single-use vaccine from the pharmaceutical giant Johnson & Johnson is also easy to transport and is critical to achieving this goal, although approval is still pending.
“If stimulus happens at the same time that people get vaccinated, the optimism can’t help but build,” said Keith Buchanan, at GLOBALT Investments in Atlanta.
“It’s a fairly safe bet there will be another stimulus package with more direct payments to consumers and individuals and more help for small businesses.”