Asian investors moved cautiously Wednesday as they weighed fresh signs the world economy is in recovery against fears of a second virus wave, geopolitical tensions and profit-taking.
Federal Reserve and Bank of Japan pledges of more support troubled businesses, and reports of a new trillion-dollar US stimulus sent regional markets soaring Tuesday as they helped traders look past a worrying increase in infections from Tokyo to Beijing to Texas.
Optimism about the world’s top economy was given an extra boost by data showing retail sales, crucial to any recovery, soared a forecast-busting 17.7 percent in May. That came after figures showed a surprise jump in jobs last month.
Meanwhile, an Oxford University study showed the steroid dexamethasone could cut risk of death for people on ventilators by almost a third. Still, Fed chief Jerome Powell, whose sobering summary of the outlook for the economy last week sparked a plunge across equities, warned in congressional testimony that recovery would take some time.—AFP