Shares advanced in Asia on Tuesday, extending another rally that took the S&P 500 to within striking distance of its all-time high set in February.
Japan’s Nikkei 225 added 1.6% and Hong Kong gained more than 2% in early trading, even as the tally of confirmed new coronavirus cases worldwide topped 20 million, according to a tally by Johns Hopkins University.
The gains followed President Donald Trump’s announcement over the weekend of stopgap moves to aid the economy, after talks on Capitol Hill for a bigger rescue package faltered.
Sentiment got an extra boost from signals that the talks might resume, and by Trump's suggestion to reporters that he is planning a capital gains tax cut and a tax reduction also for “middle income" earners.
The Hang Seng in Hong Kong added 2.1% to 24,877.14, while the Nikkei 225 climbed to 22,686.53. In South Korea, the Kospi picked up 1.3% to 2,418.91. Sydney's S&P/ASX 200 jumped 0.9% to 6,167.10 and the Shanghai Composite index climbed 0.7% to 3,402.44.
Overnight, the S&P 500 rose 0.3%, to 3,360.47, after wavering between small gains and losses. The benchmark index is now within 1% of its last record high.
The Dow Jones Industrial Average rose 1.3% to 27,791.44. The Nasdaq composite lost 0.4%, to 10,968.36.
Trump signed executive orders over the weekend to extend an expired benefit for unemployed workers, among other things. The orders were more limited than what investors hoped to see from a full rescue bill for the economy, but hopes remain that the White House and Congress will eventually reach a compromise.