On Wednesday, Australia’s S&P/ASX 200 leg gains among the region’s major markets. There are numerous factors that may affect stocks. As a reminder, the country’s economy plunged into its first recession in nearly 30 years.
Interestingly, the S&P/ASX 200 gained 1.84% to end its trading day at 5’063.20.
It is worth mentioning that, mainland Chinese stocks were mixed on the day. The Shanghai Composite dropped 0.17% to about 3’404.80. In the meantime, the Shenzhen Component added 0.273% to approximately 13’887.43.
Also, South Korea’s Kospi index saw gains on the day.
Notably, the S&P 500 added 0.8% to close at 3’526.65 on Tuesday. Moreover, the Nasdaq Composite gained 1.4% to end its trading day at 11’939.67. Importantly, both the S&P 500 as well as Nasdaq Composite reached all-time highs. This is not the end of the story as the Dow Jones Industrial Average added 215.61 points or 0.8% to close at 28’645.66.
Country’s economy and stocks
It is a well-known fact that the economy of Australia was growing for decades. Nevertheless, bushfires, and the coronavirus pandemic, caused serious damage to the local economy. As mentioned above, the country’s economy fell into its first recession in nearly 30 years.
According to the Australian Bureau of Statistics, the country’s gross domestic product (GDP) fell 7% in the second quarter. Importantly, in the first quarter, GDP dropped by 0.3%.
The coronavirus pandemic created a lot of issues for the country. However, other developed countries suffered even bigger losses.
Australia as well as other countries are also trying to minimize the damage caused by the pandemic.
Unfortunately, the coronavirus pandemic is far from being over. Countries with the biggest economies should work together to boost the global economy. Otherwise, it will be hard to deal with the economic impact of the coronavirus pandemic. Australia’s government allocated billions of dollars to stabilize the situation.