Asian stocks gain after Fed announces new bond-buying measures

Asian stocks rose earlier on Tuesday, surging overnight in U.S. markets after the Fed announced new measures in a bid to recover the U.S. economy from the COVID-19 virus.

Japan’s Nikkei climbed by 3.42% at 10:16 PM ET (3:16 AM GMT), as investors await the Bank of Japan’s policy decision later in the day.

Meanwhile, South Korea’s KOSPI was up by 4.25%. 

China’s Shanghai Composite gained 0.77%, while the Shenzhen Component rose by 1.36%.

Hong Kong’s Hang Seng Index gained 2.47%.

Down Under, the ASX 200 soared by 3.49%.

The U.S. Federal Reserve on Monday said the range of eligible assets for its bond buying program will now include all U.S. corporate bonds that meet a certain criteria. Investors are awaiting Fed Chairman Jerome Powell’s speech after he delivers the semiannual policy report to Congress on Wednesday.

Investors traded cautiously amid new COVID-19 cases that broke out in the U.S. and China during the weekend. Over 8 million cases were reported globally as of June 16, according to data from Johns Hopkins University. However, many kept an optimistic view despite the figures.