U.S. stimulus package boosts shares, dollar
Asian share markets recorded an upbeat performance, while the dollar placed near a three-month high. The series of gains came after the U.S. Senate successfully legislated a $1.9 trillion stimulus package, and an impressive payrolls report bolstered economic optimism.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%. Japan’s benchmark index Nikkei advanced 1.2%, while S&P 500 e-minis traded 0.3% after a wild turnaround on Friday.
The dollar was also seen upbeat, and this could be attributed to U.S. stimulus, faster economic resumption, and greater consumer firepower. While this positively affected the greenback, these factors heavily dragged bonds.
Equity investors grew enthusiastic over U.S. data showing that nonfarm payrolls increased 379,000 last month. The unemployment rate, on the other hand, declined 6.2% backed by strong incomes, spending, and corporate earnings.