The economy of Australia was growing for decades. However, bushfires, as well as the coronavirus pandemic, caused serious damage to the local economy. Consequently, the country’s economy fell into its first recession in nearly 30 years. Based on the information provided by the Australian Bureau of Statistics, the country’s gross domestic product (GDP) fell 7% in the second quarter. As a reminder, in the first quarter GDP dropped 0.3%. Interestingly, Australia’s S&P/ASX 200 leg gains among the region’s major markets. Let’s have a look at the stocks in the Asia Pacific.
The S&P/ASX 200 jumped 1.84% to end its trading day at 5’063.20.
Interestingly, mainland Chinese stocks were mixed on the day. For example, the Shanghai Composite fell 0.17% to about 3’404.80. At the same time, the Shenzhen Component gained 0.273% to approximately 13’887.43.
Hong Kong’s Hang Seng index fell 0.18% as of its final hour of trading.
South Korea’s Kospi index saw gains on the day.
Moreover, the S&P 500 rose 0.8% to close at 3’526.65 on September 1. At the same time, the Nasdaq Composite added 1.4% to end its trading day at 11’939.67. It is worth mentioning that, both the S&P 500 and Nasdaq Composite reached all-time highs. Moreover, the Dow Jones Industrial Average advanced 215.61 points or 0.8% to close at 28’645.66.
The local economy, coronavirus pandemic, and stocks
As can be seen from the example stated above, the coronavirus pandemic created a lot of problems for Australia. Moreover, countries around the world are also trying to minimize the damage caused by the pandemic.
Moreover, the coronavirus pandemic is far from being over. Thus, it is too early to say how long it would take to deal with this challenge. The global community should work together to boost the economy. Moreover, countries should try to focus on the global economy.
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