Global Markets: Asia shares gain despite Chinese COVID case numbers rising

Twamev Construction and Infrastructure

23/11/2022 01:58

By Scott Murdoch
       SYDNEY, Nov 23 (Reuters) - Asian share markets were
mostly in positive territory on Wednesday despite rising
COVID-19 cases in mainland China leaving investors uncertain
over how much the fresh outbreaks could slow the reopening of
the world's second-largest economy. 
    MSCI's broadest index of Asia-Pacific shares outside Japan
 .MIAPJ0000PUS  was up 0.3%, after U.S. stocks ended the
previous session with  gains. The index is up 12% so far this
month.  
    Australian shares  .AXJO  were up 0.7%, with most gains
coming from mining and resources giants as a result of higher
oil prices. Japan's stock market  .N225  was closed for a
national holiday.
    New Zealand's central bank raised interest rates by 75 basis
points - its largest ever move - on Wednesday to a near 14-year
high of 4.25% and flagged more hikes are on the way as it
struggles to contain stubbornly high inflation.
    Hong Kong's Hang Seng Index  .HSI  was up 0.6% in early
trade while China's CSI300 Index  .CSI300  opened broadly flat.
    China on Wednesday reported 29,157 new COVID infections for
Nov. 22, according to the National Health Commission, compared
with 28,127 new cases a day earlier. Case numbers in Beijing and
Shanghai are steadily rising, prompting authorities to close
some facilities.
    "The biggest story for investors in Asia is still the China
reopening," said Suresh Tantia, Credit Suisse's senior
investment strategist in Singapore.
    "We had seen China markets rally up to 20% but those
expectations are being dialled back, we think a reopening will
be a slower process and will not be done in a hurry. That means
a lot of investors are trimming their exposure, cutting their
losses or booking any profits they might have made on China."
    Meanwhile the release of U.S. Federal Reserve minutes from
its November policy meeting later on Wednesday is being keenly
awaited by investors as they look for insight of how officials
view economic conditions. 
    The Dow Jones Industrial Average  .DJI  rose 1.2% to
34,098.1 on Tuesday, the S&P 500  .SPX  gained 1.4% to 4,003.58
and the Nasdaq Composite  .IXIC  added 1.4% to 11,174.41. Energy
stocks led the gains, stoked by rising oil prices. 
    The yield on benchmark 10-year Treasury notes  US10YT=RR  
rose to  3.7578% compared with its U.S. close of 3.758% on
Tuesday. 
    Two-year yield  US2YT=RR , which rises with traders'
expectations of higher Fed fund rates, touched 4.5227% compared
with a U.S. close of 4.517%. 
    The dollar dropped 0.02% against the yen to 141.21  JPY= . 
    The European single currency  EUR=  was up 0.0x?% on the day
at $1.0303, having gained 4.26% in a month, while the dollar
index  =USD , which tracks the greenback against a basket of
currencies of other major trading partners, was down at 107.14.
    "The U.S. dollar lost a little of its recent gains
(as) central bankers' consensus about how much more interest
rates should rise is fraying," Commonwealth Bank analyst Tobin
Gorey wrote on Wednesday.
    "Smaller or fewer rate rises are perhaps not a cause for
optimism, it is cause for less pessimism."
    Oil remained higher on Wednesday after top exporter Saudi
Arabia said OPEC+ would maintain output cuts and could take
further steps to balance the market. 
    In Asian trading, U.S. crude  CLc1  ticked up 0.3% to $81.15
a barrel. Brent crude  LCOc1  rose to $88.35 per barrel. 
    Gold was slightly lower. Spot gold  XAU=  was traded at
$1740.09 per ounce.  GOL/ 
    While the FTX exchange collapse continues to roil
cryptocurrency markets, Bitcoin  BTC=  was 0.33% higher in Asian
trading hours to $16,184. 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD    http://tmsnrt.rs/2egbfVh
Global asset performance    http://tmsnrt.rs/2yaDPgn
Asian stock markets    https://tmsnrt.rs/2zpUAr4
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 (Reporting by Scott Murdoch in Sydney; Editing by Kenneth
Maxwell)
 ((Scott.Murdoch@thomsonreuters.com;))
 
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For the state of play of Asian stock markets please click on:  0#.INDEXA ))