ith China’s economic borders reopening and the Federal Reserve’s concern, Asian stocks increased;Deltafx Admin 11 January 2023
Most Asian stock markets rose sharply on Monday amid optimism about improving economic conditions in China. While U.S. jobs data came in weaker than expected, investors expect the Federal Reserve to raise interest rates less than planned.
Chinese stocks and China-focused stocks were the day’s best performers. Hong Kong’s Hang Seng Index rose 1.7 percent to a six-month high, while South Korea’s KOSPI gained 2.4 percent.
After China reopened its international borders on Sunday, the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 0.7 percent and 0.5 percent, respectively. The move marks Beijing’s attempt to move away from its strict zero-covid policy, which has stifled the country’s economic growth over the past three years.
With the reopening, investors are now assessing China’s economic performance this year. However, with the country facing the worst Covid 19 outbreak since restrictions were further eased, analysts are cautious about the short-term outlook.