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Asian markets have surged to a 2-week high being fueled by a series of events followed by the Goldman Sachs tip on the country’s potential economic recovery.
Goldman Sachs Group Inc (NYSE: GS) Chief Asia Economist Andrew Tilton has said that of all the regions, Asia appears to be the one ‘best positioned’ for economic recovery post-COVID-19 pandemic. Tilton said this while speaking to CNBC, and adduced his claims to how Asia has been successful in containing the coronavirus pandemic.
The effects of the coronavirus pandemic have stirred a series of economic downturns in most countries across all regions, some more severe than others. The effect of the coronavirus pandemic reported plunged top economies such as the United Kingdom into recession while that of the United States of America was neither spared. With the recession causing a ripple effect across economies in various continents, nations are gearing to end the year with high optimism for full recovery in 2021.
With respect to regional recovery, Tilton said that they at Goldman Sachs “think Asia’s really the best positioned of the major regions right now, just given the good control of the virus in most of the region outside of India and some parts of Southeast Asia,” adding that the global lockdown triggered by coronavirus outbreak hit world economies really hard especially the industrial and the global supply chain, but there is now “reasonable momentum” globally.
Despite the positive note on Asia’s economic recovery, the forthcoming U.S. presidential elections can have a profound effect on the recovery trajectory of other nations as the economic policies of the winner (either incumbent President Donald Trump, or Democratic candidate Joe Biden), will be a factor in fueling these recoveries.
Asia Stocks Shows 2-Week High amid Economic Recovery Tip
Asian markets have surged to a 2-week high being fueled by a series of events followed by the Goldman Sachs tip on the country’s potential economic recovery. Beside this bullish tip, the stock market jumped in part after President Trump was discharged from the hospital on Monday as well as hopes for a new stimulus package currently being negotiated.
“There is also some market attention on whether the U.S. Congress will pass the extra stimulus bill,” said Tai Hui, Chief Asia Market Strategist at JP Morgan Asset Management. The passage of the stimulus bill will fuel the growth in most Asian economies that are fairly export-dependent.
As reported by Reuters, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.67% to a two and a half week-high, with Hong Kong’s HSI among the leaders climbing 0.73%. Japan’s Nikkei added 0.56%.
The Chinese market remains closed on Monday for a holiday. With the tickers seen both in regional markets and foreign influences, the outright recovery will be fueled after a coronavirus virus vaccine has been approved and witnessed broad administration across the board. Efforts to get economies back on track will likely involve a COVID-19 vaccine, a race in which other regions appear to be ahead of Asia.