By Chris Becker
It’s all about the stimulus with stock markets lifting overnight in the wake of combined fiscal packages from various governments to offset the economic cost of the coronavirus impact. Wall Street lifted the strongest, up nearly 6% across the board but commodities continued lower, dragging the Aussie dollar with them to a new 17 year low, breaching the 60 cent level. It’s likely to be another short covering day here in Asia, but caution reigns on any bad news events.
Looking at Asian share markets yesterday, the Shanghai Composite was down significantly before the lunch break but recovered somewhat into the close, off by only 0.4% to 2779 points while the Hang Seng Index lifted at the close, but punched through for a 0.8% rise, finishing at 23263 points. This puts it a slightly better position but not yet above the previous up session and needs to get back above 24000 points before indicating a bottom pattern, with momentum still well oversold:
