Stocks in Asia set to rise as Dow sees largest 3-day surge in almost 90 years

Stocks in Asia were set to trade higher on Friday after the Dow Jones Industrial Average soared overnight to its biggest 3-day surge since 1931.

Futures pointed to a higher open for stocks in Japan. The Nikkei futures contract in Chicago was at 19,320 while its counterpart in Osaka was at 19,100. That compared against the Nikkei 225’s last close at 18,664.60.

Meanwhile, stocks in Australia rose in early trade, with the S&P/ASX 200 up more than 2%.

On the economic data front, China’s industrial profits data for February is set to be out at around 9:30 a.m. HK/SIN on Friday. The release could offer clues to the economic impact of the coronavirus in China, where the disease was first reported.

Overnight stateside, the Dow skyrocketed 1,351.62 points to close at 22,552.17, capping its biggest three-day surge since 1931. The S&P 500 also posted a three-day winning streak, rising 6.2% to end its trading day at 2,630.07. The Nasdaq Composite advanced 5.6%  to close at 7,797.5.

The U.S. Senate unanimously passed a historic $2 trillion coronavirus relief package Wednesday night, with the stimulus bill now headed for the House, which will push to pass it by voice vote Friday morning. House speaker Nancy Pelosi, D-Calif., said the bill will be passed “with strong bipartisan support.”

Still, jobless benefit claims in the U.S. had soared to 3.28 million last week, according to the Labor Department — by far a record. That, however, was still lower than the most dire estimates on Wall Street.

Meanwhile, U.S. Federal Reserve Chairman Jerome Powell said Thursday that the central bank will not “run out of ammunition” to keep the economy stable.

“We judge markets are pricing‑in a short sharp US recession,” Joseph Capurso, senior currency strategist at Commonwealth Bank of Australia, wrote in a note. “Our fear is the surge in jobless claims – even if the benefits paid will soon be increased – will draw-out the recession longer than markets expect.”

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.352 after falling from levels above 100 yesterday.

The Japanese yen traded at 109.31 against the dollar after strengthening from levels above 110 yesterday. The Australian dollar changed hands at $0.6057 after seeing levels below $0.58 earlier in the trading week.

Here’s a look at what’s on tap in the trading day ahead:

  • China: Industrial profits for February at 9:30 a.m. HK/SIN

CNBC’s Fred Imbert contributed to this report.