Reuters - Asian shares climbed to a seven-month high Wednesday on expanding stimulus measures being implemented to cushion the effects of the coronavirus pandemic on world economies.
MSCI's broadest index of Asia-Pacific shares outside of Japan rose 0.3% - a third consecutive day of price rises. It was last at 570.80 points, a level not seen since late January.
Gains were driven by share prices in Australia, where they were up 0.8%, and South Korea, which added 0.6%. Japan's Nikkei rose, too, but China markets saw selling and prices opened weaker with the CSI300 index off 0.7%.
Overnight, both the S&P 500 and Nasdaq Composite set records soon after the opening bell following strong sales growth reported by big U.S. retailers including Walmart, Kohl's and Home Depot. The S&P 500 topped its high reached in February before the onset of the COVID-19 pandemic drove the benchmark index to lows March 23. The index has risen about 55% since then.
At 126 days that "is the fastest bear market recovery ever," Melbourne-based National Australia Bank economist Tapas Strickland said.
The U.S. Federal Reserve's intervention in financial markets to maintain liquidity during the pandemic has pushed risk assets to highs and reduced demand for safe-haven assets and weakened the U.S. dollar.
Market optimism was helped by data showing an acceleration in U.S. homebuilding to the most in nearly four years in July. In addition, hopes of an interim fiscal package were re-ignited overnight with House Speaker Nancy Pelosi indicating a willingness to cut proposals in order to seal a deal, NAB's Strickland said.
The U.S. Fed was set to release the minutes of its latest meeting and share markets will be looking "for any hints on what the Fed could announce regarding forward guidance come September," Strickland said. The Fed has cut rates to near zero to help businesses through the pandemic. This has sent the dollar to a 27-month low. The dollar index was last unchanged at 92.23 from more than 100 in March. The yen was firmer at 107.51 against the dollar.
Gold was last at $1,998 and U.S. gold futures were a weaker at $2,005.2. Crude-oil fell on concerns U.S. fuel demand may not recover quickly. Brent crude was down 26 cents at 45.20 and U.S. crude was off 18 cents at $42.71.
