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· US stock futures and yields rise while dollar drops on Fed's unlimited QE

The US stock futures are flashing green in Asia as markets are offering US dollars, possibly in response to the Federal Reserve's (Fed) open-ended asset purchase program.

At press time, the futures tied to Wall Street's benchmark equity index S&P 500 is reporting a 4 percent gain and the 10-year yield is currently seen at 0.827%, up over six basis points on the day.

The stock futures and yields are rising amid increased expectations for a massive coronavirus spending bill. As per the Washington Post, the US Senate leaders and the Trump administration appeared closer to reaching an agreement on Monday evening on a massive spending bill that could inject $2 trillion into the economy to blunt the impacts of the coronavirus

Meanwhile, the dollar is losing ground on the Fed's unlimited quantitative easing or asset purchases. The Fed, on Monday, said it will buy treasuries and mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions. Essentially, now there is no limit up to which the Fed can expand its balance sheet. The central bank's balance sheet expanded to a record high of $4.7 trillion last week.

The Fed's unlimited easing could continue to ease stress in the credit markets, leading to further weakness in the dollar.

The equity markets, however, may struggle if the US Senate leaders and the Trump administration fail to reach a bipartisan agreement.

· Asian equities markets rallied on Tuesday as investors bet the U.S Federal Reserve’s promise of unlimited dollar funding would ease painful strains in financial markets even if it could not stop the economic hit of the coronavirus epidemic.

MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 4.9%, to more than halve Monday’s drop.

· Japan’s share benchmark Nikkei climbed more than 7% on Tuesday, logging its biggest one-day surge in more than four years, boosted by hopes for massive buying by the Bank of Japan (BOJ) and public pension funds.

The Nikkei average surged 7.1%, its biggest daily gain since February 2016, to finish at 18,092.35, its highest close in 1-1/2 weeks.

The broader Topix climbed 3.2% to 1,333.10, with all but four of the 33 sector sub-indexes on the Tokyo Stock Exchange in positive territory.

· Chinese equities rose on Tuesday, tracking a regional rally after the U.S. Federal Reserve unleashed a barrage of support measures to ease a global cash crunch, although a sharp rise in new coronavirus cases in China checked gains.

At the midday break, the Shanghai Composite index was 1.48% higher at 2,699.43 points, trimming gains after earlier rising more than 2.3%.

China’s blue-chip CSI300 index was 1.85% higher after earlier gains of up to 2.75%. Its financial sector sub-index gained 1.88%, the consumer staples sector jumped 3.02%, the real estate index added 1.57% and the healthcare sub-index rose 2.26%.