Asian markets rebound despite pandemic and inflationary concerns
TOKYO – Asian stocks rose on Tuesday, in part due to bargain-seeking on recent global market drops amid continued pessimism over the conronavirus pandemic.
Japan’s benchmark Nikkei 225 jumped 2.1% in the morning session, while Korea’s Kospi gained 1.2%. The Australian S & P / ASX 200 added 0.4%. The Hong Kong Hang Seng jumped 1.3%, while the Shanghai Composite Index was little changed. Shares fell in Indonesia but rose sharply in Taiwan and Singapore
Regional markets ignored the latest data on Japan’s gross domestic product, showing that the world’s third-largest economy contracted at an annualized rate of 5.1% in January-March, its worst pace since World War II. Analysts were expecting the GDP results and do not see the situation improving anytime soon.
Yeap Jung Rong, market strategist at IG in Singapore, said Asian markets were looking to “bounce back from weak virus resurgence fears.” Although Asia has been more successful in reducing COVID-19-related infections and deaths, compared to the United States and parts of Europe, concerns have grown over recent outbreaks of coronavirus cases.
US stocks slipped on Monday, placing more losses on last week’s stumble, as inflation concerns continue to plague Wall Street.
The S&P 500 fell 10.56, or 0.3%, to 4,163.29, with tech stocks and other old market darlings again taking the biggest losses. The benchmark has just seen a weekly decline of 1.4% from its all-time high, which would have been even worse without a late rebound.
The Dow Jones Industrial Average fell 54.34, or 0.2%, to 34,327.79, while the Nasdaq composite fell 50.93, or 0.4%, to 13,379.05.
In energy trading, benchmark US crude added 21 cents to $ 66.48 a barrel. Brent, the international standard, rose 25 cents to $ 69.71 a barrel.
In currency trading, the US dollar fell slightly to 109.15 Japanese yen from 109.27 yen.