COVID 19: Philippines Reopens Markets, Japan Lowers Rates
Investing.com - Countries across Asia continue to take big steps to limit the economic fallout of the COVID-19 pandemic. In South Korea, home to the largest outbreak in the region outside China, the number of new cases has dropped sharply but the outbreak continues. Elsewhere in the region, countries are grappling with the possibility of recession and sharp slowdowns in economic performance.
Australia
The Reserve Bank of Australia reduced its cash rate to an all-time low of 0.25%, the second cut this month at an unscheduled policy meeting.
It also targeted a 0.25% yield on three-year Australian government bonds, with plans for purchases in the secondary market beginning Friday.
Indonesia
Indonesia unveiled a second emergency stimulus package on March 13.
The new package will be worth $8 billion and provide fiscal and non-fiscal incentives as well as some incentives for small and medium-sized enterprises (SMEs). The non-fiscal incentives are aimed at easing imports and exports.
In February, Indonesia announced a $725 million package to support tourism, aviation and real estate as well as dedicating $324 million to low-income households.
Japan
The Bank of Japan cut interest rates to 0.1% in line with analyst expectations.
Philippines
The Philippine stock exchange reopened on Thursday, after shutting down Tuesday in response to the COVID-19 pandemic. Trading is being done remotely.
On March 16, the Philippines’ Department of Finance announced a PHP27.1 billion package that will be primarily focused on shoring up the tourism industry that has been hard hit by the pandemic.
The country has restricted travel across the main island of Luzon, including stopping all movement in and out of the capital of Manila.
South Korea
The country, which unveiled a $13.7 billion stimulus package on March 4, has seen the number of new cases of COVID-19 drop dramatically.
The number of new cases has been under 100 for four days in a row, with 93 reportd on Wedneday. At the end of February, the nubmer of cases was going up by more than 900 a day.
Europe
The European Central Bank (ECB) announced a €750 billion ($821.23 billion) Pandemic Emergency Purchase Programme to purchase securities in economies hit by severe outbreaks.
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