Mood on world financial markets seems to correspond to progress of coronavirus pandemic
While western Europe or Northern America still seek solid ground, southeast Asia has been through a successful week.
The novel coronavirus epicenter has shifted to western part of Europe and Northern America, including the U.S, and progress on financial markets correlate with that. Shares in China and southeast Asia has been through one of the best trading week in years. To some extent, announcement of releasing first part of stimulus package to the U.S. economy supported the growth.
Financial help offered by the Fed could reach up to $2 trillion. A stimulus package of almost $60 billion was introduced by Malaysia, and Bank of Taiwan or Indonesian government similarly announced their preparedness.
It was Indonesian shares, which ended up the trading week with more 4,8%, the largest growth in the region. Moreover, Singapore Exchange and Kuala Lumpur Stock Exchange indexes were up in more than 1%. Yet, even though these might be some positive news, we still need to be very careful. A return to normal state will be sensitive to any negative news and will take long.