Asian stocks rally, bullion market suffers


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Asian stocks rally, bullion market suffers

Stock markets in Asia were expected to open higher on Thursday after a woebegone Wednesday after global stock and crude prices increased amid expectation of economic revival after the pandemic and support from respective governments.

Among the gainers were expected to be Hong Kong’s Hang Seng, Japan’s Nikkei, and the Australian share market. This move upwards is seen coming, as most countries have begun to emerge from the lockdown period, they had imposed on themselves to battle the threats of the virus.

Fine-tuning the economy also seems to be the immediate priority of the governments that had entered lockdown with each taking a different route to get their economy back on track. This, in turn, added to investors’ morale that the pandemic would not hamper the investment and economic activity in the long-term.

The American stock market, too, posted gains. The Dow Jones rose 1.52 per cent while S&P gained 1.67 per cent and Nasdaq Composite gained 2.08 per cent. However, Japan’s Nikkei bucked the trend of expectations and posted a slump in the morning trade.

It was trading lower at 0.05 per cent. On these gains, Australian brokerage company Pepperstone’s research head Chris Weston said, as quoted by Reuters, “A solid night for risk, with equities working, crude and copper pushing higher and again that should spill over into Asia trade”.

In terms of international currency, the Euro gained against the US Dollar whose value slipped against several other significant currency counterparts. Like the Dollar, the bullion market, too, dipped after having gained on Wednesday on the hopes of a vaccine being developed against the virus.