Stock markets in Asia rose cautiously on Friday, after investors in the United States sent stocks more than 6 percent higher on optimism over the impact of a big spending package from Washington.

Most of the region’s markets were up by more than 1 percent at midday in Asia, including major indexes in Tokyo, Hong Kong and Shanghai. Only Australia and New Zealand bucked the positive trend in the Asia-Pacific region, with those markets down about 2 percent late in their trading day.

Other markets signaled persistent unease. Trading in longer-term U.S. Treasury bonds, a traditional safe place to park money in times of trouble, was mixed in Asian trading on Friday. Oil prices, another indicator of attitudes toward the economy, were modestly higher in futures trading.

It was not clear how long Wall Street’s cheer would last. Futures markets were predicting that stocks in the United States and Europe would open lower.

Wall Street has been in rally mode, as investors bid up shares of companies that were set to receive support from Washington’s $2 trillion coronavirus aid bill.

With the package advancing through the Senate, the gains continued on Thursday. The S&P 500 climbed 6.2 percent, even after the government reported a staggering jump in unemployment claims by workers.

As it has been all week, investors’ focus was on companies likely to get help from the spending plan that passed the Senate on Wednesday night. The House of Representatives and President Trump are expected to approve it.

Boeing rose nearly 14 percent on Thursday because the package specifically sets aside $17 billion for “businesses critical to maintaining national security” — language that was seen as intended at least partly for the aircraft manufacturer and key Pentagon contractor.

Other companies that were hit hard in the early days of the coronavirus outbreak continued to soar. American Airlines and Delta Air Lines rose nearly 2 percent. Carnival Corporation was up about 14 percent.

But the economic crisis is perhaps the most daunting since World War II. On Thursday, a government report showed a record rise in weekly applications for unemployment benefits, which jumped to nearly 3.3 million from 282,000 in a week.

Reporting was contributed by Carlos Tejada and Daniel Victor.

Source

- Advertisement -