Asian stocks were set to open steady to higher on Friday as a late Wall Street rally supported global sentiment
Stocks fell 2% around the globe this week and the dollar posted its strongest weekly performance since April as concern over the economic effect of a second wave of coronavirus-related lockdowns weighed on investors' risk appetite. Other than COVID-19 angst, the week was dominated by speculation over the likelihood of another stimulus package to support the American economy. "There's evidence of a slowdown in the United States, which we think is temporary, but it would be reinforced if there is no additional fiscal package," said Sebastien Galy, senior macro strategist at Nordea Asset Management.
Wall Street rose in a choppy session on Thursday on hopes of more economic stimulus but the gains were not enough to lift an index of stocks across the globe, while the dollar ticked down from two-month highs. The Federal Reserve this week has talked up the importance of more fiscal stimulus amid investor fears of another economic hit from the coronavirus pandemic. Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, a lawmaker said on Thursday, as House Speaker Nancy Pelosi reiterated that she is ready to negotiate with the White House.