Central banks are working hard to cope with the problems associated with coronavirus pandemic. Stocks in Asia strengthened their positions as investors reacted to recent announcements by central banks.
Japanese stocks saw gains on the day. The Nikkei 225 jumped 4.88% to close at 22,582.21 as shares of robot maker Fanuc soared 6.74%. At the same time, the Topix index gained 4,09% to finish its trading day at 1,593.45.
Also, South Korea’s Kospi index added 5.28% to close at 2,138.05.
Hong Kong’s Hang Seng index advanced 2.39% to close at 24,344.09. Let’s have a look at the mainland Chinese stocks. The Shanghai Composite gained 1.44% to around 2,931.75. Moreover, the Shenzhen Component added 1.847% to approximately 11,398.97.
Additionally, stocks in Australia saw robust gains on Tuesday. The S&P/ASX 200 advanced 3.89% to close at 5,942.30.
Central banks and stocks
Investors are closely monitoring the situation and recent announcements by the central banks of Australia, Japan, and the U.S. helped to improve market sentiment.
According to the Reserve Bank of Australia, the board underlined the importance of fiscal and monetary policy in Australia. Importantly, those measures helped to support the economy during this difficult period.
Interestingly, the Bank of Japan made the decision to keep its main policy tools. According to the statement released by the country’s central bank, the local economy is expected to remain in a severe condition for the time being due to the coronavirus pandemic. As a result, the bank highlighted the economic impact of the coronavirus pandemic.
On Monday, the U.S. Federal Reserve announced more measures to support the market. In fact, the Federal Reserve decided to buy individual corporate bonds. It is worth noting that Monday’s announcement by the central bank marked an expansion into the secondary market. The country’s central bank is trying to improve the situation. Hopefully, central banks in different parts of the world are working hard to avoid the world financial crisis.
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