Global Economy

South Korea stocks surge around 4% as Dow sees largest 3-day surge in almost 90 years

Stocks in Asia jumped in Friday morning trade after the Dow Jones Industrial Average soared overnight to its biggest 3-day surge since 1931.

South Korean stocks led gains among the region’s major markets, with the Kospi up 3.73% while the Kosdaq index rose 4%.

In Japan, the Nikkei 22 surged 3.5% in early trade while the Topix index gained 3.11%.

Meanwhile, stocks in Australia rose in morning trade, with the S&P/ASX 200 up about 2%.

Overall, the MSCI Asia ex-Japan index traded 0.94% higher.

On the economic data front, China’s industrial profits data for February is set to be out at around 9:30 a.m. HK/SIN on Friday. The release could offer clues to the economic impact of the coronavirus in China, where the disease was first reported.

Overnight stateside, the Dow skyrocketed 1,351.62 points to close at 22,552.17, capping its biggest three-day surge since 1931. The S&P 500 also posted a three-day winning streak, rising 6.2% to end its trading day at 2,630.07. The Nasdaq Composite advanced 5.6%  to close at 7,797.5.

The U.S. Senate unanimously passed a historic $2 trillion coronavirus relief package Wednesday night, with the stimulus bill now headed for the House, which will push to pass it by voice vote Friday morning. House speaker Nancy Pelosi, D-Calif., said the bill will be passed “with strong bipartisan support.”

Still, jobless benefit claims in the U.S. had soared to 3.28 million last week, according to the Labor Department — by far a record. That, however, was still lower than the most dire estimates on Wall Street.

Meanwhile, U.S. Federal Reserve Chairman Jerome Powell said Thursday that the central bank will not “run out of ammunition” to keep the economy stable.

“We judge markets are pricing‑in a short sharp US recession,” Joseph Capurso, senior currency strategist at Commonwealth Bank of Australia, wrote in a note. “Our fear is the surge in jobless claims – even if the benefits paid will soon be increased – will draw-out the recession longer than markets expect.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.294 after falling from levels above 100 yesterday.

The Japanese yen traded at 109.08 against the dollar after strengthening from levels above 110 yesterday. The Australian dollar changed hands at $0.6072 after seeing levels below $0.58 earlier in the trading week.

Oil prices were higher in the morning of Asian trading hours, with international benchmark Brent crude futures up 1.33% to $26.69 per barrel. U.S. crude futures also advanced 2.04% to $23.06 per barrel.

Here’s a look at what’s on tap in the trading day ahead:

  • China: Industrial profits for February at 9:30 a.m. HK/SIN

CNBC’s Fred Imbert contributed to this report.


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