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Asian markets tumble as early stimulus rally fizzles

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AFP Hong Kong
Last Updated : Mar 18 2020 | 3:38 PM IST

Asian markets plunged Wednesday, reversing an early rally fuelled by global stimulus pledges, including a more than $1 trillion package flagged by the United States.

With borders being shut and countries going into lockdown, there is a broad expectation the world economy will plunge into recession as markets convulse.

Dealers across the planet, who have been sent running for the hills, have been begging for government measures to mitigate the impact of the disease as trade collapses and businesses close.

On Tuesday, the US led the charge, with Treasury Secretary Steven Mnuchin saying officials were drawing up a package that could surpass $1 trillion, on top of $300 billion in deferred tax payments, making it among the largest federal emergency plans ever and far surpassing assistance during the 2008 global financial meltdown.

The measures would include cash payments to struggling families, with Mnuchin warning the pandemic could drive US unemployment to 20 percent, a Republican Senate source told CNN.

"We don't want people losing jobs and having no money to live," Donald Trump said at a White House press conference, adding that the package "is a substantial number. We are going big."
Tokyo - Nikkei 225: DOWN 1.7 percent at 16,726.55 (close) Hong Kong - Hang Seng: DOWN 4.2 percent at 22,291.82 (close) Shanghai - Composite: DOWN 1.8 percent at 2,728.76 (close) London - FTSE 100: DOWN 3.4 percent at 5,116.85 Dollar/yen: DOWN at 107.03 yen from 107.64 yen at 2100 GMT Euro/dollar: UP at $1.1009 from $1.1002
Pound/dollar: UP at $1.2088 from $1.2055

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First Published: Mar 18 2020 | 3:38 PM IST

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