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Sunday, January 29, 2023
Stocks & Shares

Asian shares rise as Ukraine tensions ease

Ukraine tensions

Nikkei 225 climbed 2.1%, S&P/ASX 200 gained 0.7%, Kospi soared 1.7%, Hang Seng advanced 1.2%, while the Shanghai Composite added 0.7%

Asian shares rose Wednesday, buoyed by hopes for a diplomatic solution instead of a Russian invasion of Ukraine.

But analysts warned the tensions were far from completely resolved, and the situation remains volatile.

In short, provided we get a further pause in geopolitics, we might be able to focus on worrying data instead. But I would tread carefully on the assumption that we will be able to for long, RaboResearch said in a report.

Japan’s benchmark Nikkei 225 climbed 2.1% in morning trading. Australia’s S&P/ASX 200 gained 0.7% and South Korea’s Kospi soared 1.7%. Hong Kong’s Hang Seng advanced 1.2%, while the Shanghai Composite added 0.7%. Benchmark indexes in Taiwan Malaysia and Indonesia advanced, but stocks dropped slightly in Singapore.

With the positive Wall Street lead, the recovery in risk appetite may continue to play out into the Asia session, said Yeap Jun Rong, a market strategist at IG in Singapore.

The Chinese government reported consumer prices rose 0.9% over a year earlier in January while prices of goods as they left the factory rose 9.1%.

China has been hit by the same supply disruptions that are pushing prices up in the United States and Europe, but the impact on Chinese consumers has been smaller. January inflation was down from December’s 1.5%. Forecasters expect it to decline further.

Technology companies led a rebound on Wall Street, as investors welcomed signs that tensions might ease over the Russian military buildup on Ukraine’s border.

The S&P 500 advanced 1.6% to 4,471.07. The gain snapped a three-day losing streak and nearly made up for all of its losses last week. The Dow Jones Industrial Average gained 1.2% to 34,988.84 and the tech-heavy Nasdaq composite jumped 2.5% to 14,139.76.

The anxiety retreated, said Sam Stovall, chief investment strategist at CFRA. It looks as if there’s still hope for a diplomatic solution.

Roughly 80% of stocks within the benchmark S&P 500 index notched gains. In addition to technology stocks, banks and companies that rely on consumer spending also helped lift the market.

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