The coronavirus pandemic is the most serious challenge for the global economy. Private and governmental organizations are trying to minimize the damage caused by the coronavirus pandemic. It won’t be easy to get the economy back on track. Hopefully, the U.S. plans to spend a lot of money to boost the economy. Moreover, the U.S. is not alone as other countries also unveiled massive stimulus packages. Last week the Japanese stocks, led gains among the region’s main markets.
For example, the Nikkei 225 gained 2.56% to close at 20,179.09 as shares of index heavyweights Fast Retailing and Softbank Group each added more than 3%. Meanwhile, the Topix index also jumped 2.21% to end its trading day at 1,458.28.
Mainland Chinese stocks also strengthened their positions Friday. The Shanghai Composite added 0.83% to about 2,895.34. At the same time, the Shenzhen Composite rose 1.172% to around 1,809.17.
South Korea’s Kospi index gained 0.89% to close at 1,945.82. Moreover, the Kosdaq index jumped 2.11% to finish its trading day at 682.30.
Furthermore, Australia’s S&P/ASX 200 advanced 0.5% to close at 5,391.10.
Last week the Reserve Bank of Australia released its statement regarding the monetary policy. Based on the statement, the global gross domestic product (GDP) is expected to fall sharply in the first half of 2020.
U.S. stocks and the state of the local economy
The world’s largest economy is struggling to deal with the coronavirus crisis. Importantly, it took only five weeks for the U.S. economy to erase all the job gains it added over the last 11 years. Hopefully, the Federal Reserve continues to support the economy.
Moreover, on May 7 the Dow Jones Industrial Average gained 211.25 points or 0.9% at 23,875.89. Moreover, the S&P 500 added 1.2% to close at 2,881.19. The Nasdaq Composite closed 1.4% higher at 8,979.66.