Asian markets drift as rally stalls, stimulus row dents optimism
Published : Friday, 18 September, 2020 at 9:27 PM Count : 147
Asian markets were mixed Friday as investors struggled to reignite the rally that has characterised much of the past six months, owing to a stuttering economic recovery and US lawmakers’ failure to agree a new stimulus.
With coronavirus showing no sign of easing as fresh spikes around the world see the reimposition of containment measures including lockdowns, traders are growing increasingly worried about how long it will take to get back on track.
Trillions of dollars in government and central bank cash have provided much-needed support to economies — particularly equity markets — and none more so than in the United States.
And with the first massive rescue package having run its course and Federal Reserve monetary policies such as record-low interest rates having limited effect, pressure is growing on Congress to come up with more help, with the head of the central bank leading the calls.
But there is little hope Republicans and Democrats are anywhere close to reaching a compromise after weeks of bickering.
With nearly 30 million Americans receiving government help, observers said there was growing concern about the impact on the crucial consumer sector that drives the world’s top economy.