Stock markets around the Asia Pacific region as well as in other parts of the globe benefited from the latest news. Central banks and governments are ready to spend billions of dollars to support their economies.
On Friday, South Korea’s Kospi index rose 7.44% to 1,566.15. Moreover, the Kosdaq index jumped 9.2% to 467.75.
Hopefully, stock markets in other parts of Asia also followed the footsteps of South Korean stocks. For example, Hong Kong’s Hang Seng index added 3.97% as of its final hour of trading.
Moreover, mainland Chinese stocks also saw gains on the day. The Shanghai Composite index gained 0.47%. At the same time, the Shenzhen composite index added 0.166%
Australia’s S&P/ASX 200 gained 0.7% to close at 4,816.60.
The impact of stimulus measures on stock markets 
As stated-above global stock markets surged higher on Friday, thanks to central banks and governments.
The U.S. Federal Reserve, as well as the European Central Bank and Bank of England, made the decision to allocate money for financial markets. The governments of the central banks mentioned above are ready to support this decision.
Moreover, governments of top economies promised to spend trillions of dollars to support their economies. Such decisions are important as companies are trying to avert the worst-case scenario.
The New York Federal Reserve announced that it would purchase another $10 billion of mortgage-backed securities. This is a part of the larger package of $200 billion in mortgage bonds the Federal Reserve vowed to buy as it relaunched quantitative easing.
Moreover, the country’s central bank also took steps to ease an acute shortage of dollars. Importantly, a shortage of dollars was destabilizing the markets. This decision will help to stabilize the situation.
Central banks in cooperation with governments have the opportunity to solve at least some of the problems created by a coronavirus. Global stock markets will strengthen their positions thanks to such measures.
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