Asia is home to some of the largest economies in the world and investors and analysts are constantly analyzing the situation on the ground. For example China, Japan, etc. Moreover, countries located region have the potential to achieve even bigger results. Unfortunately, the coronavirus pandemic created too many problems for the economy. On Tuesday, stocks across the Asia Pacific saw gains as investors are closely monitoring the situation. It is not surprising as governments around the world started to remove at least some of the restrictions. Thus, it is important to understand, what will happen with the economy.
On Tuesday, Japan’s Nikkei 225 gained 1.19% to 22,325.61 as shares of index heavyweight Softbank Group soared 3.33%. At the same time, the Topix index finished its trading day 1.21% higher at 1,587.68.
Moreover, Hong Kong’s Hang Seng index strengthened its position. The index added 0.78% as of its final hour of trading.
Also, mainland Chinese stocks saw gains on June 2. The Shanghai Composite added 0.2% to about 2,921.40. In the meantime, the Shenzhen Component increased slightly to approximately 11,112.50.
South Korea’s Kospi index gained 1.07% to 2,087.19.
Furthermore, Australia’s S&P/ASX 200 closed 0.27% higher at 5,835.10.
Stocks and investor sentiment
On Tuesday, the Reserve Bank of Australia’s (RBA) released a statement regarding its decision. According to RBA Governor Philip Lowe, infection rates fell in many countries. Moreover, governments lifted some of the restrictions. As a result, there is a chance to support the global economy by both the large fiscal packages as well as the significant easing in monetary policies.
Tensions between the U.S. and China have the potential to affect the stocks. The relations between the world’s largest economies were full of challenges. However, the coronavirus pandemic, as well as a controversial new security bill for Hong Kong, created additional problems. As a result, it won’t be easy to resolve all issues until the end of this year.
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