Asian markets track Wall St surge, focus turns to Capitol Hill

Asian markets track Wall St surge, focus turns to Capitol Hill


Hong Kong: Asian stock markets rose on Tuesday, after Wall Street set a record close. Investors were encouraged by better-than-expected US data and new stimulus measures for the world’s top economies.

However, although signs of infection have slowed down in major US states, the spread of the virus on the planet and the reintroduction of strict containment measures are still the main factors that overwhelm equity.

Technology stocks drove the surge in the New York stock market, pushing the Nasdaq Index to record highs as traders were looking for companies that might benefit from people forced to stay at home or work from home.

The data is also encouraging, showing that the US manufacturing sector expanded last month at the fastest rate since March last year, followed by strong factory data in China and Europe.

Still, AxiCorp’s Stephen Innes said: “The composition of China’s economic recovery offers a roadmap to the rest of the world that is not especially bullish for a consumer-driven rebound. It’s easier to normalise the supply-side of the economy than the demand side in a post-pandemic-shock environment.”

Now that it has attracted the attention of Washington, Democrats and Republicans are working hard to fight for a new package to save the US economy from the pandemic.

With additional unemployment benefits and bans on evictions now dried up, people worry that if nothing is done as soon as possible, millions of Americans will suffer and this will hit the already troubled economy.

Democrat House Speaker Nancy Pelosi said a meeting with Treasury Secretary Steven Mnuchin and White House chief of Staff Mark Meadows had been “productive”. 

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