SINGAPORE- Asian stock markets advanced to a two-week high on Tuesday after US President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh US stimulus package appeared to brighten.
Bonds and the dollar nursed losses amid the improving risk appetite, while oil extended gains.
Trump returned to the White House on Monday after a three-night hospital stay and said he felt “real good”, though one of his doctors cautioned that he may not be out of the woods yet.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.71 percent to a two week-high, led by Hong Kong climbing 0.88 percent. Japan’s Nikkei also added 0.41 percent.
Separately, US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour and were preparing to talk again Tuesday, continuing their work towards a deal on coronavirus relief spending.
As well as Trump’s health, “there is also some market attention on whether the US Congress will pass the extra stimulus bill,” said Tai Hui, Chief Asia Market Strategist, J.P. Morgan Asset Management “If we do see some form of stimulus coming through, I think the market will take it in a positive light as much of the important support from the previous round has expired,” he said.