Asian markets mostly rise in respite from recent rout

Asian markets mostly rise in respite from recent rout


Hong Kong: Due to the influx of bargain hunters, most Asian markets rebounded on Monday after bleeding last week. However, the surge in infections and stagnant vaccination have offset the long-term hope for economic recovery, and distributors are still at an advantage.

Worrying about online retail investors attacking Wall Street short traders has also caused anxiety on the trading floor because they fear that they will be forced to sell some stocks to cover themselves.

Due to the combined impact of a series of issues including the rise in virus cases, the issue of the national immunization program, and concerns about high valuations after months of rallies, the global market was a red tide last week.

New York’s three major indexes closed on Friday with sharp declines, and there are rumors that the stock market will see a correction.

Nevertheless, the new week started with a positive attitude, with Hong Kong and Seoul rising by more than 1%, and Tokyo by 0.9%. Shanghai, Sydney and Taipei stock markets also rose, while Manila stocks rose more than 2%. In Singapore, Jakarta and Wellington both have losses.

“Despite lockdown and mobility restrictions tightening, leading to a first-quarter slowdown, the global economy will register the most vigorous global growth explosion in decades in 2021,” said Axi strategist Stephen Innes.

“And when combined with the continued policy support, it should ultimately outweigh any risk parity-driven sell-off in stocks.”

He added that while the vaccine rollouts were having teething problems, they “will ultimately be the linchpin for the global recovery”.

But he warned that there is growing concern that the spread of highly contagious variants of this virus will slow the relaxation of containment measures, which will affect the global recovery and may lead to two recessions in some countries.

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