Mixed signs in Asia, strong momentum after the holiday in Shanghai

Mixed signals prevail on the stock exchanges of the Asia-Pacific region on Monday, with the markets in mainland China returning to “action” after the long holiday of the Lunar New Year.

On the board, the Japanese Nikkei lost 0.70%, with the South Korean KOSPI falling by 0.19%, while in Hong Kong the Hang Seng “loses” 0.44%. In mainland China, Shanghai rose 2.03%, with Shenzen gaining 0.96%. In Taiwan, Taiwan Weighted closed with gains of 1.28%, while in Australia, the S & P / ASX200 fell by 0.13%.

The growing Covid infections in the wider region due to the Omicron mutation are having an aggravating effect on the investment climate. Most of Japan is under restraint (part-time) in an effort to reduce the rapid increase in cases and hospitalizations.

Although about 80% of Japanese have received two doses of Covid-19 vaccine, only 5% of the country has taken a booster dose. Prime Minister Fumio Kishida is expected to announce an initiative soon to increase the rate of vaccination, according to Japanese media.

Investors are also watching the moves of central banks in India, Indonesia and Thailand, which will decide on the course of their monetary policy within the week.

At the same time, results are expected from major corporate names in the region, including Japanese automakers. In them, shortages in semiconductors (chips) and other disturbances and pressures in production due to pandemic are expected to be assessed.

The eyes of the markets have not gone far from the crisis in Ukraine, with US President Joe Biden’s National Security Adviser Jake Sullivan warning on Sunday that a Russian invasion of Ukraine could be “just around the corner”.

Source: Capital

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