Global stocks track Wall St rally, Tokyo jumps nearly 5%
TOKYO (AP) — Global shares rose Tuesday, cheered by fresh moves by the U.S. Federal Reserve to support markets battered by the coronavirus pandemic.
France's CAC 40 gained 2.1% in early trading to 4,914.50, while Germany's DAX was up 2.4% at 12,200.39. Britain's FTSE 100 surged 2.5% to 6,213.01. U.S. shares were also set for gains, with Dow futures at 26,110.0, up 1.7%. S&P 500 futures rose 1.2% to 3,097.12.
“In case the generosity of the Fed was in any doubt, it is not. Global equity markets are recovering quickly,” after the Fed announcement, Stephen Innes, chief global markets strategist at AxiCorp, said in a report.
Japan's benchmark Nikkei 225 surged 4.9% to finish at 22,582.21 after the central bank promised more funding for corporate financing, though its minus 0.1% benchmark interest rate and ultra-lax monetary stance remained unchanged.
South Korea's Kospi gained 5.3% to 2,138.05, while Australia's S&P/ASX 200 jumped 3.9% to 5,942.30. Hong Kong's Hang Seng added 2.4% to 24,344.09. The Shanghai Composite edged up 1.4% to 2,931.75.
The Bank of Japan expanded its “Special Program,” including purchases of commercial paper and corporate bonds and its lending programs for commercial banks, to 110 trillion yen from 75 trillion yen ($1.02 trillion from $690 billion).
In a statement, the Bank of Japan said the economy “is likely to remain in a severe situation for the time being due to the impact of COVID-19," though it expects economic activity to resume gradually.
Gov. Haruhiko Kuroda told reporters that recovery could come in the latter part of the year if the effects of the pandemic are mitigated. He stressed that meeting participants agreed the bank should take extra action if needed.
Flexibility is key because of uncertainties about the...