Home AsiaASEAN Asian markets rose Thursday

Asian markets rose Thursday but optimism over the pace of economic recovery continued to be offset by worries about rising infections across Europe and the continent’s vaccine struggles, with inflation concerns casting an ever-present shadow.

After a year-long surge, global equities have run out of steam with expectations of a strong growth rebound stoking fear that prices will soar, forcing central banks to wind in the ultra-low monetary policies that have supported the rally.

And while the stock gains have been boosted by the rollout of inoculations — particularly in Britain and the United States — Europe’s stuttering launch has been compounded by a jump in new cases that has led to lockdowns and containment measures being reimposed.

That has many observers questioning whether its economy can recover as quickly as previously hoped.

US markets sank again Wednesday, led by a two percent drop in the Nasdaq as technology firms took a further hit from expectations the Federal Reserve will have to lift interest rates earlier than forecast, despite repeated pledges by policymakers that they will not budge.

Adding to the selling in New York were fears Joe Biden will look to hike corporate taxes to pay for his huge economic rescue packages, while a fractious meeting between US and Chinese officials last week indicating relations will not likely improve any time soon.

“When the short term wobbles, investors naturally start to fret about those lingering longer-term concerns,” said Axi strategist Stephen Innes.

“They are also hurting sentiment with renewed worries about US tax policy and a realisation that any lingering hope of a reset in US-China trade relations is unwarranted.

“The latter is quite a worrying proposition as the two economic behemoths draw battlegrounds, setting the stage for a real dust-up as the superpowers shift from vying for supply-chain domination to battling it out for global internet technology supremacy.”

– ‘Oil on the water’ –

Still, Asian investors pushed tentative gains in early trade Thursday following recent losses.

Tokyo, Shanghai, Seoul and Sydney were all up healthily, while there were also advances in Singapore, Taipei and Manila.

Hong Kong edged up but investors were keeping a worried eye on the city’s already slow vaccine programme after Pfizer/BioNTech shots were halted Wednesday following the discovery of some flawed packaging.

However, tech firms in the city followed their US peers lower and the Hang Seng Index remains in correction territory having fallen 10 percent from its recent high seen in February.

“The reflation trade will have further legs to run,” Lale Akoner, at BNY Mellon Investment Management, told Bloomberg TV. But she added: “We do see higher inflationary pressures building, higher interest rates and softer dollar to continue.”

Oil prices sank more than one percent a day after soaring seven percent in reaction to a giant container ship getting stuck in the Suez Canal, one of the world’s busiest shipping routes.

Crude, which tipped a 14-month high earlier this month, has suffered heavy selling in the past couple of weeks on fears about the impact on demand caused by new European lockdowns.

Innes added the Suez blockage “means increased oil on the water — either queuing for the canal or diverting around Africa. The extra voyage time is akin to ‘filling a pipeline’ and should support the very jittery market that has seen the rush for the door over the past five sessions”.

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.