Japan records surprise trade deficit in July as exports weaken further
* MSCI ACWI builds on biggest gains since 2008 financial
crisis
* Gold also up sharply
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, March 25 (Reuters) - Asian shares extended their
rally on Wednesday in the wake of Wall Street's big gains as
U.S. Congress appeared closer to passing a $2 trillion stimulus
package to curb the coronavirus pandemic's economic toll.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 1.3% with Australian shares rising 4.5% and
South Korean shares .KS11 gaining 4.0%. Japan's Nikkei .N225
added 2.0%.
"Japanese shares have been bolstered by aggressive buying
from the Bank of Japan and pension money this week. That has
prompted hedge funds to cover their short positions," said
Norihiro Fujito, chief investment strategist at Mitsubishi UFJ
Morgan Stanley Securities.
On Tuesday, MSCI's gauge of stocks across the globe
.MIWD00000PUS gained 8.39%, the largest single-day gain since
the wild swings seen during the height of the global financial
crisis in October 2008.
On Wall Street, the Dow Jones Industrial Average .DJI
soared 11.37%, its biggest one-day percentage gain since 1933.
U.S. stock futures EScv1 were down 0.5% in early Asian
trade.
Senior Democrats and Republicans in the divided U.S.
Congress said on Tuesday they were close to a deal on a $2
trillion stimulus package to limit the coronavirus pandemic's
economic toll. But it was unclear when they would be ready to
vote on a bill. Investor fears about a sharp economic downturn are easing
after the U.S. Federal Reserve's offer of unlimited bond-buying
and programmes to buy corporate debt.
In the currency market, the dollar has slipped as a
greenback liquidity crunch loosened slightly.
The euro traded at $1.0798 EUR= after four straight days
of gains.
The dollar stayed firmer against the yen due to dollar
demands at the March 31 end of the Japanese financial, trading
at 111.33 yen JPY= , near a one-month high of 111.715 touched
the previous day.
Gold soared almost 5%, its biggest gains since 2008, on
Tuesday and last stood at $1,633 XAU= , in part helped by
concerns lockdowns in major producer South Africa could disrupt
supply.
Still, the course of the market is still largely dependent
on how much countries can slow the pandemic and how quickly they
can lift various curbs on economic activity.
Confirmed cases are now topping 400,000 globally with New
York City suffering another quick and brutal rise in the number
of infections to around 15,000. Oil prices steadied as hopes for U.S. stimulus offset fears
from falling global demand.
India, the world's third largest oil consumer, ordered its
1.3 billion residents to stay home for three weeks, the latest
big fuel user to announce restrictions on social movement, which
have destroyed demand for gasoline and jet fuel worldwide.
The market remained pressured by a flood of supply after
Saudi Arabia started a price war earlier this month, a move that
dealt a crushing blow to markets already reeling from the
epidemic.
U.S crude futures CLc1 rose 1.8% to $24.45 per barrel.
(Editing by Sam Holmes)