Australia’s Share Market Rises Amid Recession Claims

Australia’s Share Market Rises Amid Recession Claims

With a sudden turn of events overnight, the Australian share market recorded its biggest gain on September 2 after reviving from the Gross Domestic Product’s negative growth of the last two quarters. The Asia-Pacific region stocks rose drastically with the S&P/ASX200 Benchmark Index closing at 6063.2 points that was higher by 109.8 points or 1.84% on Wednesday, rubbishing rumors of elevating depression in the country. The All Ordinaries Index rose by 1.77% or 108.62 points to reach the 6,251.80 figure.

During an interaction, the Australian Bureau of Statistics (ABS) revealed that the gross domestic product or GDP of Australia witnessed a fall of 0.3% in March, whereas the second quarter (June) had a steeping downfall of 7% – the biggest quarterly fall recorded. The surging ASX rally came after the drop of 1.77% of ASX200 on Tuesday. The surprising shoot up helped to pool gains for all the sectors; however, the maximum scores were recorded by telecommunication, financials, consumer discretionary, materials issues, and energy.

The S&P 500 Index increased by 0.8% to record a closing value of 3,526.65, and the Nasdaq Composite ended its day at 11,939.67 marks with a jump of 1.4%. Both the indexes recorded an all-time high after long periods of fall. The U.S dollar index had a value of 92.504 while the Dow Jones Industrial Average held a 0.8% increase to close at the 28,645.66 spot. There was a significant increase in the oil value with international benchmark Brent crude futures amounting to $45.97 per barrel with a 0.86% surge and U.S crude features closing at $43.15 per barrel against the 0.91% increase.

The Commonwealth Bank of Australia economists quoted that it is not surprising that the production reduced drastically because of the economy being shut on a large scale. Policy decisions were made to limit Covid-19 from spreading, and hence, the GDP decline was inevitable.

In China, the Shanghai Composite was down by 0.17%, whereas the Shenzhen component increased by 0.273% on the same day. The Nikkei 225 and Topix index of Japan surged by 0.47% on the closing. On the other hand, Kospi (South Korea) increased by 0.63%, Hong Kong’s Hang Seng index faced a 0.18% down on the final day.

The coronavirus pandemic has given a major jolt to world economies, and the deep fluctuations in the GDP are the direct impact of this crisis. While some economies are having a slight growth, others like India are struggling to find a solution. It will be interesting to see how the financial space will behave in the future.

Mary Turner is a senior reporter of FinanceOrange team. She is passionate for finance and business news. Before joining our team, she worked for local papers in US and freelanced for some foremost publications. Currently, she covers anything from the finance to market, banking to personal financing.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *