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Asia shares gain despite rising China COVID cases

SYDNEY (Reuters) – Asian stock markets broadly rose on Wednesday, but a rise in new coronavirus cases in China raised fears of new lockdowns and could delay the reopening of the world’s second-largest economy. Crude oil and the dollar fell because of the volatility.

European equities appeared to follow Asia in gains, with Eurostox 50 futures across the region up 0.33%, German DAX futures up 0.27% and FTSE futures up 0.16%. US stock futures S&P 500 e-minis fell 0.07%.

MSCI’s broadest index of non-Japanese Asia-Pacific equities (.MIAPJ0000PUS) It gained 0.4%, aided by overnight gains in US stocks. The index is up 12% so far this month.

australian stocks (.AXJO) It rose 0.63%, led by the mining and resources giant.Japanese stock market (.N225) Closed for a national holiday.

central bank of new zealand interest rate hike 75 basis points – the biggest move in history – reached a 14-year high of 4.25% on Wednesday, signaling further rate hikes are on the way as it struggles to contain stubbornly high inflation. rice field.

Hong Kong’s Hang Seng Index (.HSI) China’s CSI300 index rose 0.46% in early trading. (.CSI300) It was down 0.2%.

China on Wednesday reported 29,157 new COVID infections on 22nd November.The number of cases in Beijing and Shanghai has risen steadily and remains high in several major manufacturing and export hubs, urging officials to close some facilities.

“The biggest story for Asian investors remains the reopening of the Chinese economy,” said Suresh Tantia, senior investment strategist for Singapore at Credit Suisse.

“We’ve seen the Chinese market rise to 20%, but that expectation is receding. We believe the reopening is a slower process and it won’t be rushed. That means a lot of investment. Houses are reducing their exposure and investing less, making losses or making gains they might have made in China.”

Meanwhile, the minutes of the US Federal Reserve’s November policy meeting to be released later on Wednesday are much awaited as investors look for signs of a debate about easing the pace of rate hikes. .

The November CPI will be released on December 13, one day before the central bank announces its final interest rate decision for 2022.

“The Fed is going to be very data-driven,” said Clara Chong, investment strategist at JPMorgan Asset Management. We’ll have to double check,” he said.

“Even if inflation subsides in November, we believe the Fed will continue to raise rather than cut by 50 basis points or show signs of starting a pivot.”

In Asian trading, the benchmark 10-year government bond yield rose to 3.7578% compared with the US closing price of 3.758% on Tuesday.

The two-year yield rose to 4.5144% compared to 4.517% at the close of the US on traders’ expectations of a Fed rate hike.

The dollar gained 0.13% against the yen to 141.43.

The European single currency rose 0.1% on the day to $1.0313, while the Dollar Index, which tracks the US dollar against a basket of other major trading partner currencies, was slightly weaker at 107.07.

“The US dollar has lost some of its recent gains as central banks’ consensus on how much interest rates should rise has been shaken,” wrote Commonwealth Bank analyst Tobin Gorey.

“Smaller or smaller rate hikes are probably less of a cause for optimism, but less for pessimism.”

Oil failed to sustain its early gains during the Asian session.

it rose first after top exporter SAUDI ARABIA said OPEC+ could maintain production cuts and take further steps to balance the market.

However, the price started to fall in the second half of the session. By noon, US crude fell 0.19% to $80.80 a barrel and Brent crude fell 0.3% to $88.08.

Gold is slightly cheaper. For spot gold he traded at $1734.35 per ounce.

on the other hand, FTX exchange collapse Bitcoin surged 2.2% to $16,482 during Asian trading hours as the cryptocurrency market continues to turmoil.

Reporting by Scott Murdoch, Sydney.Editing by Kenneth Maxwell and Kim Coghill

Our criteria: Thomson Reuters Trust Principles.

thomson Reuters

Scott Murdoch has worked as a journalist for Thomson Reuters and News Corp in Australia for over 20 years. He has specialized in financial journalism for most of his career and is based in Hong Kong covering equity and fixed income capital markets across Asia.



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