Most Asian stock markets are moving positively on Wednesday, drawing from yesterday’s gains on Wall Street, which ended a three-day negative streak for the Nasdaq and S&P 500.
The Japanese Nikkei 225 moves with small gains of 0.2% to 26,213.64 points.
In Hong Kong, the Hang Seng Index rose 1.7%, while in mainland China the Shanghai Composite climbed 1.6%. Chinese authorities have insisted on a zero-sum policy in their campaign to stem the pandemic, despite warnings from the World Health Organization that this approach is unsustainable.
Developments on the pandemic front, however, are encouraging, with Shanghai announcing a 51% drop in new coronavirus infections on Tuesday from the previous day. Investors hope that the authorities will soon give the green light to ease restrictions in the city of 25 million inhabitants.
In South Korea the Kospi marks marginal changes, while in Australia the S & P / ASX 200 gains 0.2%. Shares in Singapore and Taiwan lost 0.7% and 0.35%, while in Indonesia gained 0.6%.
Investors are waiting for the announcement later today of the data on the course of inflation in April in the US. On Thursday, the data on producer prices will be announced at the same time.
The rate of price increases, with annual inflation for April expected above 8%, is expected to determine the next moves of the Federal Reserve, which seems to be preparing for two more interest rate increases by 50 basis points in the summer. as part of its campaign to curb the highest inflation in 40 years. The central bank’s aggressive strategy to counter the inflation rally has sparked concerns about the risk of the economy slipping into recession.
Source: Capital
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