Daily Times

Equities extended their rally in Asia on Wednesday as the lifting of lockdown restrictions continued to fuel hope for an economic rebound from the coronavirus crisis.

While the World Health Organization said a record number of new cases were recorded globally on Monday — with Latin America, India and Russia heavily affected — European nations pressed ahead with easing strict measures that have likely sent the planet into recession.

Among the latest moves, Cyprus welcomed its first tourist flights in almost three months, while France announced the Eiffel Tower would reopen on June 25.

Investor focus is on the end of the Federal Reserve’s latest policy meeting later in the day, which will be the first since the US began to reopen and the first since Friday’s blockbuster jobs report.

The bank’s decision will be closely watched, though most observers do not expect it to further ease monetary policy, having pledged vast sums of cash as a backstop to financial markets.

‘Period of consolidation’

In early trade, Hong Kong rose 0.8 percent — an eighth straight gain — with troubled carrier Cathay Pacific at one point soaring almost 19 percent the day after it announced a major government bailout plan to help it get through the effects of the virus crisis.

Tokyo ended the morning 0.1 percent higher, while Sydney added 0.5 percent and Seoul gained 0.4 percent.

Singapore climbed 0.7 percent and Taipei put on 0.8 percent, though there were losses in Shanghai, Manila and Jakarta.

While markets are pushing on in Asia, the US rally stuttered with the Dow and S&P 500 dropping on Tuesday as observers begin to worry the surge since March’s troughs across markets may have gone too far.

The lingering optimism provided support to higher-yielding, riskier currencies, with the South Korean won and Australian dollar up 0.5 percent against the dollar, while the Chinese yuan edged up 0.3 percent.