Asian rally gains, US rally happy on hopes for stimulus

Asian rally gains, US rally happy on hopes for stimulus

Asian stocks held a modest rally on Wall Street on Friday and hoped for new stimulus for the US economy.
Despite signs of global economic rebound in the third quarter, there remains concern that the boom may run out of steam.
House Democrats said they are withdrawing their proposal for a new stimulus package in an effort to begin negotiations with the Trump administration.
Treasury Secretary Steven Menuchin and Federal Reserve Chairman Jerome Powell have said the government’s top priority is to provide affordable loans to small businesses and still support for millions of Americans.
The paralyzing participation has prevented the renewal of congressional aid, and the recent vacancy in the Supreme Court following the death of Justice Ruth Beder Ginsburg has deepened the divide.
There is renewed optimism that the largest economy may get another boost in Friday’s business.
“There is a need to go through this incentive deal,” Stephen Ines of AxiCorp said in a comment.
“With the risk everywhere you look, it doesn’t seem like a great time to try to take the bottom half of the equity markets, but an incentive relief bill will go a long way to surround the market.”
Japan’s benchmark Nikkei 225 rose 0.6per percent to close at 23,219.41. Australia’s S&P / ASS 200 rose 1.3 percent to 5,954.00, while South Korea’s Kospi rose 0.5 percent to 2,283.47.
Hong Kong’s Hang Seng closed up 0.4 percent at 23,394.24 and Shanghai Composite closed down 0.1 percent at 3,224.84.
On Wall Street, the S&P 500 rose 0.3 percent to 3,246.59, swinging between a 0.9 percent loss and a 1.3 percent gain.
The pace of the market has recently shifted with lightning speed, often changing direction by the hour.
The US presidential election is a major factor, especially after President Donald Trump’s refusal on Wednesday for a peaceful change of power if he loses, and tensions are growing between the United States and China.
Adding to the uncertainty is the question of how soon drug manufacturers will be able to develop a coronovirus vaccine to stem future waves of outbreaks.
“We are focusing on strategic and long-term rather than day-to-day, because it is going to be volatile between now and the election,” said George Rousk, head of investment strategy at Wells Fargo Private Wealth Management. .
The Dow Jones Industrial Average rose 0.2 percent to 26,815.44. Nasdaq Composite rose 0.4 percent to 10,672.27. The Russell 2000 index of small company shares rose less than 0.1 percent to close at 1,451.82.
Thursday’s headline report showed that 870,000 workers filed for unemployment claims last week, expecting worse conditions than economists.
At the top of a myriad of concerns is the coronovirus epidemic and the danger that worldwide deterioration may lead to more trade sanctions.
In energy trading, benchmark US crude rose 12 cents to $ 40.43 a barrel. Internationally, Brent crude rose $ 10 to $ 42.04 a barrel.
The dollar was trading at 105.48 Japanese yen, virtually unchanged from 105.47 yen Thursday. The euro costs USD 1.166, slightly more than USD 1.1639.

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