Wed, 15 Jul 2020

Stock and currency markets in Asia set alight

Lola Evans
24 Mar 2020, 17:35 GMT+10

SYDNEY, NSW, Australia - Stocks in Asia staged solid rallies on Tuesday despite major falls overnight on Wall Street.

"The biggest trigger for positive sentiment in these markets will be a flattening of the trajectory for the virus,' K2 Asset Management head of research George Boubouras told Reuters Thomson by phone from Melbourne.

"Economies around the world are going offline and that is devastating for economic activity, it's creating the most robust dislocation in financial markets in living memory," he said.

Macquarie Wealth Management divisional director Martin Lakos described the current rout working its way through markets as worse then the 2008 global financial crisis.

"The falls that we have seen have been breathtaking, and it is the speed of those declines that have caught people by surprise," he told Reuters Thomson.

"If the number of cases start to stabilize, and that gives investors confidence then we could start to see them revert to fundamentals. Markets are not trading on fundamentals right now."

At the close on Tuesday, the Nikkei 225 was ahead b y a whopping 1,204.57 points or 7.13% at 18,092.35.

China's Shanghai Composite advanced 62.27 points or 2.34% to 2,722.44.

The Australian All Ords rose 189.70 points or 4.15% to 4,753.30.

In Hong Kong, the Hang Send soared 967.16 points or 4.46% to 22,663.49.

Foreign exchange traders also turned the tables on their New York counterparts on Tuesday, sending the U.S. dollar into a spin.

By the close in Sydney on Tuesday the euro had strengthened to 1.0845. The British pound rose to 1.1661. The Japanese yen recovered to 110.53. The Swiss franc appreciated to 0.9767.

The Canadian dollar firmed to 1.4392. The Australian dollar jumped to 0.5955.

Overnight on Wall Street, the Dow Jones closed down 582.05 points or 3.03% at 18,591.93.

The Standard and Poor's 500 dropped 67.52 points or 2.93% to 2,237.40.

The Nasdaq Composite did best of all, falling just 18.84 points or 0.27% to 6,860.67.

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