Asia shares recovers from continuous losses, dollar rush causes market stress
The Asian shares market saw its way to recovery on Friday amid Wall Street gains as well as a record rebound in oil prices. However, with investors in a panic Dollars stampede, many speculate that the crisis has not yet come to an end.
MSCI’s broadest index of Asia Pacific shares outside Japan rallied by 3.2% after its longest streak in losses.
As the pandemic continues to disrupt most of the world’s economy, governments worldwide have pledged increasing amounts of stimulus in their best effort to stave off a recession as central banks provided markets with the Dollar to remedy funding. The rising demand for the Dollar proved to be problematic for countries and companies that depend on the Greenback which kept emerging market currencies to be sold in a negative feedback loop.
In South Korea, shares recovered 3.5% of its losses incurred in the week. Meanwhile, Australian shares bounced up 4.2% while Japan’s Nikkei futures sold at 17,435.
S&P500’s E-Mini futures steadied at 1.2% which may have been attributed to the news of a nationwide quarantine issued to residents by the California government.