Stocks lead rally as G7 pledges virus support

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BEIJING/TOKYO: A sharp rebound in world stock markets lost only a little steam on Tuesday (March 3) despite a lack of any immediately gratifying measures after global policymakers pledged to address the economic fallout from the coronavirus outbreak.

A pedestrian wearing a face mask walks past an electric quotation board displaying the Nikkei 225 Index on the Tokyo Stock Exchange in Tokyo. A sharp rebound in world stock markets lost only a little steam on Tuesday despite a lack of any immediately gratifying measures after global policymakers pledged to address the economic fallout from the Covid-19 outbreak. - AFP

Finance ministers from the G7 and central bank governors said in a statement that they would use"all appropriate policy tools" to safeguard against the economic risks posed by the fast-spreading coronavirus. Earlier messages from the US Federal Reserve that it was prepared to act continued to weigh on the dollar, having fuelled expectations of a sizable rate cut at its meeting in two weeks.

Oil prices gained a further 2% after a jump of more than 4% on Monday. US West Texas Intermediate crude futures went to $48 a barrel while Brent crude stood at US$52.90. Australian shares ended 0.7% up after the central bank cut interest rates to a record low of 0.5% - the fourth drop in less than a year.

 

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