Japan’s Nikkei surges 8% as $2 trillion U.S. aid deal lifts world markets

Japan’s Nikkei 225 surged 8 per cent and other world markets also jumped Wednesday after U.S. Congress and the White House reached a deal to inject nearly $2 trillion of aid into an economy ravaged by the coronavirus.

The advances followed the best day since 1933 for the Dow Jones Industrial Average, which rocketed 11.4 per cent higher on Tuesday.

Tokyo logged its biggest daily gain since 2008. Share prices there were lifted also by the decision to postpone the 2020 Olympics to July 2021 in view of the coronavirus pandemic, which has brought travel almost to a standstill and is leaving many millions of people ordered to stay home to help contain the outbreaks.

The postponement alleviated fears the event might be cancelled altogether.

European markets rallied, with Germany’s DAX climbing 4 per cent to 10,085.75. The CAC 40 in Paris picked up 4.6 per cent to 4,436.54. Britain’s FTSE 100 added 4 per cent to 5,670.45.

U.S. futures turned higher after U.S. lawmakers said they had bridged their differences over the stimulus package. The future for the Dow rose 3 per cent to 21,221.00 and the contract for the S&P 500 picked up 1.7 per cent to 2,479.70.

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