Asian stocks gain after U.S. Fed promises economic support

Asian stock markets gained Tuesday after the U.S. Federal Reserve promised support to the struggling economy as Congress delayed action on a $2 trillion coronavirus aid package.

Market benchmarks in Tokyo and South Korea rose nearly 7% while Shanghai, Hong Kong and Australian markets also gained.

Traders were encouraged by the Fed's promise to buy as many Treasuries and other assets as needed to keep financial markets functioning.

That came as Wall Street fell 3% after Congress failed to approve an economic support package. It would send checks to U.S. households and offer support for small businesses and the hard-hit travel industry, but Democrats say it favors companies too heavily at the expense of workers and public health.

The Nikkei 225 in Tokyo rose 6.7% to 18,009.50 and Seoul's Kospi gained 6.9% to 1,585.46. The Shanghai Composite Index rose 1.7% to 2,706.80.

The Hang Seng in Hong Kong was 3.8% higher at 22,513.69 and Australia's S&P-ASX 200 gained 2.9% to 4,677.70.

The Fed's promise goes beyond the $700 billion in purchases announced last week.

The central bank said it will buy a wide range of investments, including corporate bonds for the first time, to improve trading in markets that help home buyers purchase houses, state and local governments borrow and businesses to get enough short-term cash to make payroll.