Tokyo resumed its own rally on stimulus hopes, while there were also healthy gains in Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington and Manila
Asian markets rebounded Friday from the previous day’s losses, though investors were cautious as they try to gauge the impact of the Delta variant of coronavirus on the global outlook.
Hong Kong led the advances due to healthy buying into tech firms that were battered Thursday by China’s latest clampdown on the gaming industry, but concerns that authorities will crack the whip again continue to weigh on sentiment.
Hong Kong surged 1.6 percent in the morning, led by tech giants Tencent, NetEase, Alibaba and JD.com after they suffered extensive losses Thursday in reaction to Chinese officials ordering gaming firms to stop focusing on profits.
Tokyo resumed its own rally on stimulus hopes, while there were also healthy gains in Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington and Manila.
Still, while Asia was on course to end the week with gains, economies and stock markets continue to be affected by the impact of the Delta variant, which continues to send infection rates spiking and forcing some governments to impose strict containment measures.
And analysts warned that the recovery would take time.
Ultimately, the path back to a more normal economic environment is likely going to be long, and we can expect setbacks along the way, Brad McMillan, of Commonwealth Financial Network, wrote in a note. The recent slowdown could lead to further volatility in the months ahead.
With Wall Street ending in the red again, it was eurozone equities that provided the positive lead after the European Central Bank (ECB) tweaked its monetary stimulus programme, with boss Christine Lagarde saying the move was not a “tapering” but a “recalibration”.
But she did warn that the speed of the recovery continues to depend on the course of the pandemic and progress with vaccinations.
The move eased concerns about the end of the ultra-loose monetary policy that has been crucial to a recovery in economies and equities.
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