Asian shares climbed on Tuesday as investors wagered China’s economic strength would help underpin growth in the region, even as pandemic lockdowns threatened to lengthen the road to recovery in the West.
Data out on Monday had confirmed the world’s second-largest economy was one of the few to grow over 2020 and actually picked up speed as the year closed.
MSCI’s broadest index of Asia-Pacific shares outside Japan firmed 0.98%, to be a whisker from record highs. Japan’s Nikkei 225 bounced 1.5%, recovering all the losses suffered on Monday when caution had dominated markets.
Australian shares climbed 1.25% as investors bet on news that Queensland state was set to lift virus-led restrictions and on prospects of better production numbers from local miners, helped by improved industrial activity in top consumer China.
Chinese blue-chips remained flat while Hong Kong’s Hang Seng advanced 1.8%.
U.S. stocks also looked a little steadier as futures for the S&P 500 added 0.51% and NASDAQ futures 0.59%.
Analysts at JPMorgan felt the coming earnings season could brighten the mood given the consensus in Europe was for a fall of 25% year-on-year, setting a very low bar.
“The projected EPS growth in Europe now stands at the lows of the crisis which seems too conservative, and could likely lead to positive surprises over the reporting season,” they wrote in a note.
Mainland Chinese stocks were down by the early morning. The Shanghai Composite was down by 0.14% to 3,591.23. Hong Kong’s Hang Seng Index was up about 2.97% to 29,730.00.
Japan’s benchmark Nikkei average. Nikkei 225 is trading up 1.48 per cent at 28,659.00 on Tuesday, while the broader TOPIX 100 rose 0.80 per cent to 1,212.88. South Korea’s Kospi was up by 2.86% to 3100.75.
HANG SENG :-