Asia’s share is mostly high as the fear of viruses is mitigated

Bangkok-Asian stocks rose on Wednesday after another widespread backlash on Wall Street as investors bet that a new variant of the COVID-19 virus would not pose a major threat to the economy.

Stock prices rose in Tokyo, Shanghai and Seoul, but fell in Hong Kong. Oil prices have fallen.

Japan downgraded its growth forecast for the previous quarter to minus 3.6% from the previously reported reduction of 3.0%. This change reflects weak consumer and public demand and trade, as well as lower levels of private inventories.

Economists predict a recovery this quarter, thanks to a recovery in activity due to the sharp drop in coronavirus cases.

Congress approves a proposed record stimulus package of $ 56 trillion ($ 490 billion), including cash distribution and aid to the sick business, to save the economy from the downturn exacerbated by the coronavirus pandemic. Is expected.

Tokyo’s Nikkei 225 Index rose 1.4% to 28,860.62, and the Shanghai Composite Index rose 1.2% to 3,637.57. Hong Kong’s Hang Seng Index fell 0.1% to 23,954.04.

In Australia, the S & P / ASX 200 rose 1.3% to 7,405.40 and the South Korean Kospi rose 0.3% to 3,001.80.

Tuesday’s S & P 500 rose 2.1%, the largest rise since March, ending at 4,686.75. Nasdaq rose 3% to 15,686.92 and the Dow Jones Industrial Average rose 1.4% to 35,719.43.

Small-cap stocks performed better than broader markets as a sign that investors were confident in their economic growth. Russell 2000 was up 2.3% to 2,253.79.

This week’s rebound comes after the market has lost for the second straight week and has been squeezed by concerns about the spread of the Omicron variant of COVID-19, mixed data on the employment market, and inflation concerns.

Monday’s comment from Dr. Anthony Fauci, Chief Medical Advisor of the White House, is an early sign that the omicron variant of coronavirus may be less dangerous than the delta variant encouraged investors. Said that it suggests.

It will take a few more weeks to know if Omicron is more contagious, causes more serious illness, or avoids immunity.

Technology stocks occupy a large share of profits as investors focus on the sectors that are most poised to benefit from strong economic growth, which is considered a riskier bet. Apple was up 3.5% and Microsoft was up 2.7%.

US crude oil prices rose 3.7% to $ 72.05 per barrel, with energy futures almost up. This helped boost the energy sector of the S & P 500. This is an increase of 50.7% so far this year, already surpassing the other 10 divisions.

On Wednesday, oil prices fell and US benchmark crude fell 63 cents to $ 71.42 a barrel. Brent crude, the standard for international oil pricing, gave up 53 cents and was $ 74.91 per barrel.

The Treasury yield for 10 years fell from 1.48% late Tuesday to 1.45%. It fell to 1.34% on Friday as uneasy investors sold stocks and piled them up in bonds.

Wall Street will hold a two-day meeting of policy makers who may go beyond the protracted uncertainty about Omicron and provide up-to-date information on the Federal Reserve’s plans for a central bank to tackle inflation. I’m looking forward to one next week. The Federal Reserve said it plans to accelerate the pace of cuts in bond purchases that helped keep interest rates low. This raises concerns that the Fed will raise benchmark rates next year faster than expected.

In foreign exchange transactions, the US dollar fell from 113.59 yen to 113.36 yen. The euro rose from $ 1.1270 to $ 1.1295.

Asia’s share is mostly high as the fear of viruses is mitigated

Source link Asia’s share is mostly high as the fear of viruses is mitigated

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