Asian Shares Grow After Chinese Markets Restart
Friday saw the Chinese markets restarting after a week-long vacation, boosting Asian shares. Meanwhile, investors eye the US job data to look for new insights regarding the Federal Reserve’s tapering decision.
The MSCI index of Asia-Pacific-based shares, except Japan, surged 0.5%. The index rallied 2.1% on Thursday, scoring its highest daily gain since August 2020. On the other hand, Japan’s Nikkei index grew 1.8%.
Chinese blue chips increased by 0.56% after resuming trading operations. The markets had been closed for a week-long vacation. However, the HSI (Hong Kong Index) stayed open throughout the week, growing by 1%.
The Chinese markets have been in turmoil for the last three months due to changing regulations. Similarly, the real estate sector has been experiencing a power crunch. But the latest growth has parked a positive outlook for investors.
Herald van der Lide, HSBC’s Head of Equity Strategy at Asia-Pacific, talked about the development. According to him, debating on Chinese market conditions is shifting from being negative. The market is wondering whether there are any ways beyond the regulatory fluctuations. They are also wondering how much the uncertainty will reflect in prices. HSBC is neutral and telling the market to stay positive since valuations are low, added Herald.
On the other side of the globe, Australian shares grew by 0.84%, with help from mining stocks increasing goods prices.
But the focus stays on the real estate industry as traders wait to see how regulators try to restrict the contagion from China Evergrande Group’s debt concerns. The United States futures surged 0.16% after the Senate approved regulations to raise the Fed’s debt limit (28.4 trillion dollars) to avoid risking a historic default.
On the other hand, the Dow Jones Industrial Average surged 0.98%, the Nasdaq Composite increased 1.05%, and the S&P boosted by 0.83%. Meanwhile, the market is still worried about the US jobs data as it can provide meaningful insights about the Fed’s tapering decisions.
