Despite the fast spread of COVID-19 worldwide, stock markets have seen positive signals after the Group of 20 (G20) major economies mulled pandemic response and economic stimulus packages at the leaders' extraordinary summit Thursday.
STOCKS RISING
Major stocks are climbing more or less as the G20 members have vowed to inject over 5 trillion U.S. dollars to boost the global economy, as part of their joint efforts to mitigate the impact of the epidemic.
U.S. stocks finished Thursday's session significantly higher, with the Dow Jones Industrial Average soaring 1,351.62 points, or 6.38 percent, the S&P 500 advancing 154.51 points, or 6.24 percent, and the Nasdaq Composite Index jumping 413.24 points, or 5.60 percent.
All the 11 primary S&P 500 sectors ended higher, with utilities up 8.39 percent, representing the best-performing group.
Tokyo stocks opened sharply higher Friday, given that as of 9:15 a.m. local time (0015 GMT), the 225-issue Nikkei Stock Average gained 651.60 points, or 3.49 percent, from Thursday to 19,316.20.
Not coincidentally, the Australian share market also followed an upward trend on Friday. As of 10:30 local time (2330 GMT, Thursday), the benchmark S&P/ASX 200 index was up 111.00 points or 2.17 percent at 5,224.30, while the broader All Ordinaries index was up 113.90 points or 2.22 percent at 5249.10.
GOVERNMENTS' RESPONSE
As the pandemic is raising concerns over both the dropping demand and the disruption of supply chains, governments have acted to cushion shocks of the pandemic.
After South Korea unveiled a fiscal stimulus package worth about 80 billion dollars and unprecedented monetary policies last week, the country's central bank decided Thursday to add an "unlimited" liquidity supply to its emergency moves, with an open bidding to be held once a week by the end of June to provide liquidity to financial institutions.
On Wednesday, the U.S. Senate passed a 2-trillion-dollar stimulus package in a 96-0 vote to blunt the economic fallout of COVID-19. It remains to be approved by the House of Representatives, before being signed by President Donald Trump.
The bill aims to provide small businesses emergency loans, business tax breaks, expanded unemployment benefits, 1,000-dollar-plus direct payments for working Americans, government aid for industries, and more support for hospitals and state and local governments.
The United States has reported 82,404 coronavirus cases as of 6 p.m. U.S. Eastern Time on Thursday (2200 GMT), according to Johns Hopkins University, making it surpass China to become the one with most COVID-19 cases in the world.
Additionally, World Bank Group (WBG) President David Malpass said Thursday that the multilateral lender is now finalizing a package that could provide as much as 160 billion dollars in financial support for countries heavily hit by COVID-19.
The International Monetary Fund (IMF) also announced earlier this month that it is making available about 50 billion dollars through its rapid-disbursing emergency financing facilities for low-income and emerging market countries, and 10 billion dollars of that is intended to support the poorest members at zero interest.
INTERNATIONAL COOPERATION
Despite the positive signals from stock markets and governments' efforts against the disease, it requires broader international and regional cooperation to pass the pandemic test.
The European Union pledged Thursday close cooperation in response to the pandemic, vowing to address issues ranging from medical supplies to internal market, as the continent has become an epicenter of the disease.
As of 0347 GMT Friday, a total of 80,589 cases have been reported in Italy, compared with 57,786 in Spain, 43,938 in Germany and 29,566 in France, according to Johns Hopkins University.
The bloc will do everything possible to support research, coordinate efforts in the continent against COVID-19, including those on vaccines, and work together with key partners in the Group of Seven and G20, said leaders of the EU and its member states in a joint statement.
Prior to the G20 leaders' summit on the same day, United Nations (UN) Secretary-General Antonio Guterres asked the G20 for a "wartime plan" to fight the pandemic.
To suppress the transmission of the virus as quickly as possible, there must be a common strategy, said Guterres. "It requires a coordinated G20 response mechanism guided by the WHO (World Health Organization)."
According to the Extraordinary G20 Leaders' Summit Statement on COVID-19, the group is committed to do whatever it takes to overcome the pandemic, along with the WHO, the IMF, the World Bank, the WBG, and other international organizations, working within their existing mandates.
"We are determined to spare no effort, both individually and collectively," to protect lives, revive growth, minimize disruptions to trade and global supply chains and provide help to all countries in need of assistance, among other goals, said the statement.
