Asian markets trading higher on new stimulus from China and after in Japan Prime Minister Abe lifted the restrictions for the entire nation, and the Tokyo region reopens the businesses. In Germany, the virus reproduction rate stays below the 1.0 level and is today at 0.83, and now Germany wants to end the travel ban for tourist trips to European countries from June 15.
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China’s central bank (PBOC) announced lower borrowing costs for entrepreneurs and more help for smaller and private companies to survive the coronavirus outbreak. People’s Bank of China governor also said the central bank would pursue the more flexible monetary policy.
Hang Seng index continues the rebound for the second day after China’s foreign ministry commissioner, Xie Fang, reassured that the security legislation won’t affect freedoms of speech, press, publication and assembly.
The Japan All Industry Activity Index came in at -3.8% below the expectations of 0% in March. The Corporate Service Price Index came in at 1% below the estimates of 1.9% in April.
Nikkei 225 ended 2.55% higher at 21,271. The Hang Seng Index is 2.13% higher at 23,444. The Shanghai Composite index is 0.86% higher at 2,842. The Singapore Straits Times index is 1.63% at 2,540.
ASX 200 is 2.49% higher at 5,755 following yesterday’s gains of 2.2% amid broad-based despite buying interest across all sectors. The banking sector outperforms while travel companies boosted by optimism around the reopening of businesses. Australia’s Prime Minister Scott Morrison announced a “JobMaker” plan to support the economy return to growth, and slash the unemployment which has reached 10%.
On the upside, the first resistance for ASX 200 stands at 5,780 the daily top. The next hurdle is at 6,028 the 100-day moving average. On a break higher, bulls will be looking for an extension to 6,212 the high from March 9.
On the flip side, initial support for the ASX 200 index stands at 5,615 the daily low. In case of a move lower, bears might test the next support area at 5,486 the low from yesterday’s trading session. Next support for the ASX 200 index will be met at 5,393 the May 18 lows.