Asian Stocks Rise as U.S. Stimulus Measures Drive Hopes

Asia Pacific stocks mostly rose, as the potential expansion of the latest U.S. stimulus increased risk appetites on Tuesday.

The House of Representatives voted to expand the amounts on the stimulus checks. That is from $600 to $2,000 to qualified Americans. The Senate will also vote on the increase. 

By 10:15 PM ET (3:15 AM GMT), Japan’s Nikkei 225 rose 1.62%, hitting a 29-year high.

South Korea’s KOSPI fell by 0.19%. Meanwhile, in Australia, the ASX 200 climbed by 0.38%.

Hong Kong’s Hang Seng Index was up 0.91%.

China’s Shanghai Composite dropped 0.19% while the Shenzhen Component was edged up 0.14%.

U.S. shares increased to record highs during the previous sessions as hopes for an economic recovery grew. This was due to the passing of stimulus measures by Congress. Also, due to President Donald Trump signing the $2.3 trillion pandemic bill on Sunday.

Besides boosting, sentiments were the E.U. and the U.K.’s sealing the post-Brexit deal before the Christmas holidays.

In December, global shares have also hit record levels. This is despite the number of COVID-19 cases continuing to rise globally. Moreover, Goldman Sachs (NYSE: G.S.) also upgraded its Q1 U.S. economic growth forecast thanks to the stimulus measures.

On Wednesday, the U.S. will expect the release of pending home sales and goods trade balance data. 

Alibaba Probe Stirs Worry

Meanwhile, in other stock market news, Alibaba (NYSE:BABA) Group Holding Ltd. led the second day of frenetic selling. Among China’s largest tech firms, it was driven by fears that antitrust scrutiny will spread. They fear that it will spread beyond Jack Ma’s internet empire and engulf the country’s most powerful corporations.

Alibaba’s three largest rivals are Tencent Holdings (OTC:TCEHY), Meituan, a food delivery giant, and JD.com (NASDAQ:JD).

They have all shed nearly $200 billion in Hong Kong over the two sessions since Thursday. Regulators revealed an investigation into alleged monopolistic practices at Ma’s signature company.