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Asia equities rally as US agrees blockbuster stimulus package

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AFP Hong Kong
Last Updated : Mar 25 2020 | 2:30 PM IST

Asian equities soared again on Wednesday after US lawmakers finally agreed a mammoth stimulus package to support the world's biggest economy against the impact of the coronavirus pandemic.

While the deadly disease continues to spread, traders have a rare semblance of optimism after weeks of carnage across global markets, with eyes fixed on Washington where lawmakers in the early hours thrashed out an emergency bill worth as much as USD 2 trillion -- around 10 per cent of US gross domestic product.

"At last, we have a deal," Senate Majority Leader Mitch McConnell said, calling it a "wartime level of investment into our nation".

"We have a bipartisan agreement on the largest rescue package in American history," top Senate Democrat Chuck Schumer said shortly after McConnell spoke.

"So many people are being put out of work through no fault of their own. They don't know what their future is going to be like, how are they going to pay the bills," Schumer added.

"Well, we come to their rescue."
"This is particularly important given the aggressive fiscal stimulus from European and Asian governments in the past two weeks. The US government needs to be seen as not just counting on the Fed to do all the heavy lifting."
"Given the rapid succession of downgrades, we should likely expect more pain over the short term, as the situation in New York and California continues to deteriorate. And with the entire population of India going into a government-enforced 21-day nationwide curfew, it doesn't suggest blue sky."

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First Published: Mar 25 2020 | 2:30 PM IST

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