Asian stocks opened mixed on Thursday, following the first back-to-back gains for global equities since mid-February, as negotiations in Congress continued toward a vote on the U.S. stimulus bill later this week.
Japanese shares opened more than 2% lower amid further efforts to contain the movement of people. South Korean and Australian shares had modest gains. S&P 500 futures fluctuated after the benchmark’s rally of more than 5% fizzled amid a dispute in the Senate. Several Republicans demanded changes to the coronavirus relief package and Senator Bernie Sanders said he would hold up a vote if the legislation is altered. The Australian and New Zealand dollars declined as much as 1%. Treasuries rose.
“While exact details are still emerging, the support package should help to assuage the fears about the worst possible economic outcomes for individuals and companies,” said Oliver Blackbourn, a multi-asset portfolio manager at Janus Henderson Investors. “Investors need to remain vigilant about how the growth rate of new cases develops and how governments respond going forward.”
The Senate was heading to a vote Wednesday on the more than $2 trillion aid package of spending and tax breaks. The latest draft will include about $500 billion in loans and assistance for larger companies, as well as states and cities. Equities also gained in Europe on Wednesday, where leaders are inching toward a fiscal package of their own.
The first consecutive daily gains for global equities since Feb. 12 come as cities from Milan to Seattle reel from the deepening pandemic. With the world’s cases now topping 451,000 and more than 20,000 deaths, traders are cognizant of the ongoing threat to the global economy.
Source: Bloomberg