Most Asian markets rose Thursday following another record close on Wall Street as concerns about a new spike in infections around the world were overshadowed by optimism for the economic recovery.

The giant wall of money stumped up by governments and central banks was also providing crucial support to nervous equity traders, even as certain countries reimpose some containment measures.

And analysts expect the colossal cash back-up will likely continue to push asset prices higher.

As long as central banks "have the intention of continuing to try to provide stimulus to the global economy, markets will continue to drive higher even as they dislocate from the fundamentals that would otherwise normally drive earnings and stock prices", Shana Sissel, at Spotlight Asset Group, told Bloomberg TV.

In early trade, Hong Kong and Shanghai were each up 0.5 percent, while Tokyo gained 0.1 percent by lunch.

Seoul, Taipei and Jakarta all added 0.5 percent and Singapore edged 0.1 percent higher.

Sydney jumped 0.7 percent following Wednesday's sharp drop as Australia's second-biggest city Melbourne imposed a fresh lockdown on five million residents to combat a new virus outbreak.

However, Wellington and Manila fell.

The broad advance came after all three main New York indexes rose, with the Nasdaq rallying 1.4 percent to its fourth record in five sessions.

The easing of lockdowns and a healthy run of economic data have provided a boost to world markets in recent weeks -- with some up around 30-40 percent from March lows -- though the major driver has been the trillions of dollars in stimulus and cheap credit.

Britain on Wednesday unveiled a $40 billion budget to kick-start the economy, which tops up the $350 billion already set aside.

"The US is also likely to continue its spending spree in August, with up to $1 trillion of additional stimulus, and should the EU's package be nearly as big as the initial proposal, liquidity won't be an issue in the developed world this year," said Ken Berman at Gorilla Trades.

"China is also in the midst of an unprecedented liquidity 'experiment' and should the global economic recovery remain on track risk assets could be on fire in the second half of the year. Stay tuned!"

While there are hopes for the economic recovery, investors also remain on edge about the spread of the coronavirus, which is surging across the US, forcing several states to reclose bars and restaurants.

Protests in Belgrade
The Serbian capital Belgrade has been hit by clashes, with protesters outraged over the government's handling of the pandemic and the return of a round-the-clock weekend lockdown. Photo: AFP / Oliver BUNIC

Measures are also having to be reimposed in Serbia, while France, which had flattened its curve by imposing a strict early lockdown, said Wednesday it was girding for a possible surge in cases, leading its new prime minister to soothe fears by promising no new full shutdown.

Uncertainty about the outlook, along with an expectation that borrowing costs will remain anchored for some time, have sent gold prices soaring about a fifth this year and are now sitting above $1,800 for the first time since 2011.

And because gold is seen as a good store of value, it is also winning support from fears of high inflation caused by central bank stimulus, analysts said.

Tokyo - Nikkei 225: UP 0.2 percent at 22,486.01 (break)

Hong Kong - Hang Seng: UP 0.5 percent at 26,268.82

Shanghai - Composite: UP 0.5 percent at 3,420.22

West Texas Intermediate: DOWN 0.1 percent at $40.88 per barrel

Brent North Sea crude: UP 0.1 percent at $43.32 per barrel

Euro/dollar: UP at $1.1338 from $1.1331 at 2040 GMT

Dollar/yen: UP at 107.31 yen from 107.25 yen

Pound/dollar: DOWN at $1.2612 from $1.2615

Euro/pound: UP at 89.90 pence from 89.81 pence

New York - Dow: UP 0.7 percent at 26,067.28 (close)

London - FTSE 100: DOWN 0.6 percent at 6,156.16 (close)

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