Asian stocks managed to find its momentum on Tuesday as U.S. Federal Reserve’s funding plan temporarily relieved market sentiment from pressing losses in financial markets. However, the said scheme seemed inadequate in addressing the economic impact of the novel coronavirus.
Wall Street remained flat on red but S&P 500 E-Mini futures jumped by 3% while Japan’s benchmark index Nikkei inched up by 6.2%. The Japanese benchmark is expected to record its largest daily increase since the latter part of 2016 if it continues to tread in bull.
MSCI’s broadest index of Asia-Pacific shares outside Japan clocked in 4.2%, salvaging half of its loss from Monday’s decline. Shanghai blue chips advanced 2.7%.
The European trading board was also in an upbeat mood as EUROSTOXXX 50 futures added 3.3% and FTSE futures acquired 3.1% gains.
In its latest action to minimize the impact of the virus contagion, Fed decided to purchase large volume of assets in order to put financial markets back on track and widen its policies to corporate and municipal bonds.