Asia falls, US futures hit limit down as $1.8 trillion coronavirus relief bill fails to clear Senate hurdle

American stock futures fell sharply during Asian trading hours, to around the limit down levels, as talks on a massive emergency rescue package worth over $1 trillion for the coronavirus-stricken US economy reached a stalemate.

Dow Jones and E-Mini S&P 500 futures crashed around five percent on Asia opening, before bouncing back slightly, but continued to trade around the limits, threatening a chaotic opening for American markets unless a deal is reached in the US Senate.

Meanwhile, South Korea's Kospi dropped five percent, Singapore’s Singapore FTSE/STI and Australia's S&P/ASX 200 both crashed over seven percent, while India's Sensex hit a 10 percent circuit breaker.

Hong Kong's HSI fell four percent while mainland China's Shanghai Composite was losing around two percent. Amid the global pessimism, only Japan’s Nikkei was in the green by around two percent.

Amid an ongoing partisan battle in the US Senate, disgruntled Majority Leader Mitch McConnell announced that without a deal he would hold another vote on Monday on the same measure that failed to get the necessary 60 votes in the 100-member chamber. 

We're going to vote at 9:45 in the morning (13:45pm GMT)... 15 minutes after the [US] markets open and see whether there's a change of heart.

The third and biggest rescue package to date, estimated to be worth at least $1.8 trillion, would include loans for businesses, states and municipalities during the crisis – and a sweetener of up to $3,000 in cash for “an average family of four” – as well as up to $4 trillion in liquidity for the US Federal Reserve.

As the battle over the bill drags on, Republicans accuse Democrats of “reckless behavior” and of depriving Americans of the much-needed crisis aid. Democrats are slamming the plan as “a giant corporate bailout fund with no accountability.”

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