Asia markets swing as rate hike fears offset reflation trade

Asian markets boosted by fresh hopes for US stimulus

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Hong Kong: Asian markets rose on Wednesday as investors cheered news that the White House had proposed a new stimulus package of more than 900 billion US dollars, which boosted the hope that US lawmakers could pass a deal before Christmas.

The prospect of a bailout package for the world’s top economies helped the stock market recover. The stock market drifted for most of the month after the November surge, and the introduction of a vaccine in the UK and the imminent approval of the US added to optimism.

However, outbreaks of virus cases around the world and strict containment measures continue to cast a long shadow on the trading floor.

Eyes are also on Brussels. Brussels Prime Minister Boris Johnson will negotiate austerity negotiations with EU Prime Minister Ursula von der Leyen on the EU’s post-Brexit trade agreement.

Due to concerns about the disease, the stock market has been struggling this week, but US Treasury Secretary Steven Mnuchin said on Tuesday that he had provided Democratic House Speaker Nancy Pelosi with a new economic rescue package. , Provided much-needed help.

The $916 billion plan is bigger than the $908 billion proposal put forward last week by a bipartisan group of lawmakers, and Mnuchin said it includes “money for state and local governments and robust liability protections for businesses, schools and universities”.

Those elements have been key sticking points in negotiations between Democrats and Republicans. Crucially, the bill has been viewed by Donald Trump and Senate Majority Leader Mitch McConnell.

“My view, and I think it’s a view shared by literally everybody on both sides of the aisle, is that we can’t leave without doing a Covid bill,” McConnell said before the proposal was made public. “The country needs it.”

Hong Kong, Seoul and Wellington all rose more than one percent, while Tokyo put on one percent and Sydney jumped 0.9 percent.

There were also gains in Shanghai, Taipei and Singapore.

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