Stock market in Asia is rising after difficult week
2022.12.09 01:00
Stock market in Asia is rising after difficult week
Budrigannews.com – Despite concerns of a global recession and rising interest rates putting most regional bourses on track for weekly losses, the majority of Asian stock markets recovered from recent losses on Friday ahead of important inflation data from the United States.
The day’s best performer was Hong Kong’s index, which increased 1.7% amid growing expectations that the city government will follow Beijing in reducing COVID measures.
Additionally, the Hang Seng surged nearly 6% for a second week in a row, significantly outperforming its Asian counterparts.
As China relaxed a number of COVID-related movement restrictions and testing requirements, China’s blue-chip index gained 0.2 percent and was expected to finish the week 2.6% higher. However, this week, the index gained 1.4 percent.
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The move raised hopes for a wider reopening in the world’s second-largest economy, which is experiencing worsening economic conditions and growing public unrest.
Yet, late monetary readings show that the nation has a drawn out, difficult experience to recuperation. shrank even more in November as business activity overall decreased.
Other bourses in Asia went up. The index in South Korea and Japan both increased by 0.5 percent and 1.2 percent, respectively.
Now, the focus shifts to the upcoming inflation data from the United States, which are expected to provide additional insight into the potential course of monetary policy.
Manufacturing inflation is expected to have eased further in November, according to the U.S. data due later on Friday. The, due next week, is likely to follow a similar pattern as the reading.
Markets, on the other hand, are wary of any indications that inflation will remain stubborn, which could prompt the Federal Reserve to act more hawkishly. Although the central bank is expected to do so next week, it has expressed concern that rate increases may last longer than anticipated due to stubborn inflation.
This is bad news for Asian stocks, which were hurt this year by rising interest rates.
Asia’s technology-heavy bourses suffered the most this week as predictions of a U.S. recession in 2023 battered the sector. This week, the KOSPI and Taiwan Weighted indexes both lost nearly 2%.
Indian stocks were flat on Friday, and as the increased interest rates and announced additional measures to combat high inflation, the and indexes were poised for muted weekly performances.
