Two days ago, U.S. lawmakers approved the new Covid-19 relief bill. However, this decision failed to impress U.S. President Donald Trump. Importantly, stocks in Asia-Pacific saw gains on Wednesday following new remarks from U.S. President regarding the new Covid-19 rescue package.
It is worth noting that, mainland Chinese stocks strengthened their positions on Wednesday. The Shanghai Composite added 0.76% to end its trading day at 3,382.32. In the meantime, the Shenzhen Component gained 0.956% to 14,015.02.
Hong Kong’s Hang Seng index added about 0.7%, as of its final hour of trading.
Moreover, South Korea’s Kospi index advanced 0.96% to close at 2,759.82.
In Japan, the Nikkei 225 added 225 0.33% to finish its trading day at 26,524.79. At the same time, the Topix index closed 0.23% higher at 1,765.21.
Also, in Australia, the S&P/ASX 200 added 0.66% to 6,643.10.
It is worth noting that, shares of South Korea’s LG Electronics jumped 29.61% after the firm announced Wednesday, a joint venture agreement with Magna International. As a reminder, Magna International is a Canadian automotive supplier. As part of the agreement, the company will manufacture electric vehicle components.
On Tuesday, the S&P 500 fell 0.2% to 3,687.26. Also, the Dow Jones Industrial Average dropped 200.94 points to close at 30,015.51. However, the Nasdaq Composite added 0.5% to close at 12,807.92.
Stocks and risk factors
As mentioned above, the U.S. President is not happy with the latest rescue package. However, Donald Trump did not threaten to veto the legislation. Importantly, the latest development could delay the deployment of funds to Americans who are struggling to cope with problems. As a reminder, millions of people across the country are still out of work and there is no need to create additional problems.
Importantly, investors are closely watching the situation regarding the coronavirus pandemic, and a new Covid strain in the U.K. affected the investor sentiment around the world in recent days. Notably, it comes at a time when vaccines are starting to be rolled out and major economies reported a resurgence in daily coronavirus infections. The pandemic is the biggest challenge of the year, as it decimated various industries.
Moreover, in the case of the airline industry, it could take several years to return to pre-coronavirus levels. This information once more underlines the severity of the current situation. Hopefully, governments in many countries are ready to do whatever it takes to improve the situation.