Most Asian markets rise as earnings come into focus

Most Asian markets rise as earnings come into focus

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Hong Kong: Most Asian stock markets rose on Wednesday as investors got rid of the highest inflation rate predicted by the United States and worries about Johnson & Johnson’s vaccine, and turned their attention to the earnings season.

With the recovery of the global economy and the reopening of businesses, the latest round of company reports officially began to place high hopes in the United States that night. Analysts said they will pay close attention to the prospects and executives’ views on the potential United States. Tax reform measures, etc.

“On the back of a convincing string of economic data beats, the economic acceleration should be a powerful tailwind for stocks this quarter and ensure earnings growth,” said Axi’s Stephen Innes.

“Indeed, earnings tailwinds look set to outweigh concerns around supply chain shortages and rising commodity prices. Importantly, positive earnings and sales revisions have been broad across sectors and industries. Even more so as the Fed continues to leave the policy dial on maximum dovish setting.”

Wall Street provided another healthy lead, with the S&P closing at yet another record, with news that consumer prices rose more than expected have little impact.

Observers pointed out that traders accepted that inflation would come in on the high side for a few months owing to the low base effect from last year at the start of the pandemic, while optimism over the worldwide recovery was the dominant feature.

“A lot of growth and inflation have already been priced into the market,” Emily Roland, at John Hancock Investment Management, said. “It’s almost as if you need to exceed those expectations in order to see a more pronounced reaction from markets.”

In the early trade in Asia, Hong Kong jumped by more than 1%, while Shanghai, Sydney, Seoul, Taipei, Manila, Jakarta and Wellington also rose. Tokyo and Singapore fell.

US traders initially sold stocks because of news that the US authorities recommended a suspension of Johnson & Johnson’s shooting due to concerns about blood clots, and then the company said it would postpone the launch in Europe.

The move came as AstraZeneca’s stabbing caused similar concerns and dealt a blow to global immunization promotion efforts. However, analysts pointed out that there are no problems with other vaccines.

Pfizer also said it had enough production capacity to produce more than two billion doses this year.

Bitcoin held above $63,000 and just shy of its latest record ahead of the much-anticipated debut of the Coinbase cryptocurrency exchange on the Nasdaq on Wednesday.

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