Asia stocks at 7-month highs after Wall Street cracks more records

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SYDNEY (REUTERS) - Asian shares climbed to a seven-month peak on Wednesday (Aug 19) tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.. Read more at straitstimes.com.

SYDNEY - Asian shares climbed to a seven-month peak on Wednesday tracking the S&P 500, which scaled all-time highs driven by ever expanding policy stimulus aimed at cushioning the blow to economies from the coronavirus pandemic.

The gains were driven by Australian shares, up 0.8 per cent and South Korea, which added 0.6 per cent. Japan's Nikkei nudged up too though Chinese shares started weaker with the blue-chip CSI300 index off 0.7 per cent.Overnight, both the S&P 500 and Nasdaq Composite set records soon after the opening bell following strong sales growth reported by major US retailers including Walmart, Kohl's and Home Depot.

At just 126 days, that"is the fastest bear market recovery ever," said Tapas Strickland, economist at Melbourne-based National Australia Bank.The US Federal Reserve's intervention in financial markets to maintain liquidity in the midst of the coronavirus pandemic has pushed risk assets to all-time highs and reduced demand for safe-havens, weakening the greenback.

In addition, hopes of an interim fiscal package were re-ignited overnight with House Speaker Nancy Pelosi indicating a willingness to cut their proposals in order to seal a deal, NAB's Strickland noted. Markets were also paying close attention to minutes from the Fed's recent meeting due later in the day"for any hints on what the Fed could announce regarding forward guidance come September," Strickland said.

 

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