Asian stocks rise after Wall Street advance on aid hopes

BEIJING (AP) — Asian stock markets rose Friday after Wall Street gained on hopes government and central bank action can shield the world economy from a looming recession caused by the coronavirus.

Benchmarks in Shanghai, Hong Kong, Australia and Southeast Asia advanced. Tokyo was closed for a holiday. Oil gained again a day after U.S. benchmark crude soared by a record 23%.

Investors were encouraged after seeing more steps by the Federal Reserve and other central banks and governments to support credit markets and the economy.

On Wall Street, the benchmark S&P 500 index rose 0.5% in a relatively modest change compared with violent price swings over the past week.

Hopes are rising for progress in finding virus treatments and that “a boatload of stimulus by both central banks and governments will put the global economy in position for a U-shaped recovery,” said Edward Moya of Oanda in a report.

On Thursday, the European Central Bank launched a program to inject money into credit markets by purchasing up to 750 billion euros ($820 billion) in bonds. The Bank of England cut its key interest rate to a record low of 0.1%. Australia's central bank also cut its benchmark lending rate to 0.25%. Central banks in Taiwan, Indonesia and the Philippines also cut their benchmark rates.

They are trying to reduce the impact of a global recession that forecasters say looks increasingly likely as the United States and other governments tighten travel controls, close businesses and tell consumers and travelers to stay home.

Investors also appeared to be encouraged by reports that China is set to ramp up stimulus spending after the province where the virus emerged in December showed no new infections on Wednesday.

The Shanghai Composite Index rose 0.7% to 2,702.13 while Hong...