MOST Southeast Asian stock markets rose on Friday on expectations of further stimulus to counter the economic blow from the coronavirus outbreak, especially after data showed a surge in US unemployment filings.
The number of Americans filing claims for unemployment benefits jumped to 3.28 million last week as state-wide lockdowns brought the US economy to a halt and unleashed a wave of layoffs.
Investors are now waiting for a US$2 tril (RM8.69 tril) stimulus package that the US House of Representatives is set to pass on Friday.
“Renewed hopes of the US$2 tril fiscal support from the US reaching the economy in a timelier manner … helped to break the recent fall for the market,” Jingyi Pan, a market strategist at IG, said in a note.
“The market has clearly taken 3.28 million jobless claims as an indication that the US administration could speed up the reach of this aid to Americans.”
Across the region, governments stepped up efforts to support their economies against the financial impact of the virus that has infected more than half a million across the world.
Indonesian stocks climbed 4.8% after the government said on Thursday it was preparing to expand fiscal stimulus.
For the week, the index clocked its biggest percentage gain since October 2015.
Singaporean shares ended 1.7% higher after the city-state said it was prepared to extend more support, a day after it unveiled new measures worth more than US$30 bil. The index saw its best week in almost four years.
Malaysia rose 1.1% on its stimulus package worth about US$58.3 bil.
Thai stocks added 0.7% boosted by government plans for a “big scheme” of stimulus.
Vietnam’s index eked out meagre gains after data showed first-quarter economic growth had slowed from a year earlier.
The country also planned to limit domestic flights and curb public gatherings for two weeks from Saturday in an effort to contain the virus’ spread.
Philippines shed 2.5%, but still clocked its biggest weekly gains in 11 years. – March 27, 2020, Reuters
