Investors, analysts, authorities are closely watching the situation amid hopes of global economies reopening as well as removing some of the rules connected with social distancing.
Recently, the U.K.’s Boris Johnson outlined a “conditional plan”. Starting, from Monday people who are not able to work from home can go back to work.
Nevertheless, it will take ti to stabilize the situation as can be seen from the example of South Korea. Two days ago, the country warned of a potential second wave of infections. Recently, the country successfully contained the outbreak and decided to ease restrictions.
According to the data, 20.5 million Americans lost their jobs in April. This news comes at a time when the world’s largest economy is struggling to deal with multiple problems.
Importantly, millions of Americans applied for unemployment benefits. The unemployment rate was low before the pandemic. However, millions of people are not working anymore due to the problems related to coronavirus.
The government of the United Kingdom wants to reopen the economy with minimal impact on public health. As a result, thanks to coordinated efforts it is possible to minimize the risk factors.
Stocks in Asia and economy
On Monday, stocks reacted to the news connected with the economy. Hong Kong’s Hang Seng index added 1.72%.
In Japan, Nikkei 225 added 1.41% in afternoon trade. In the meantime, the Topix index gained 1.64%.
Mainland Chinese stocks were mixed on May 11. The Shanghai Composite gained 0.13%. However, the Shenzhen Composite slightly decreased.
South Korea’s Kospi index fell 0.27%. Nevertheless, Australia’s S&P/ASX 200 gained 1.48%.
The coronavirus pandemic continues to dominate the headlines. Investors are monitoring the situation. It won’t be easy to support the global economy. However, governments are ready to do whatever they can to avoid the financial crisis. It is hard to blame them, as millions of people lost their jobs and they do not want the unemployment rate to reach a colossal number.