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Asian Stocks Up, but “Rough Waters” Remain -Breaking

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Wednesday morning after U.S. shares saw their biggest rally in nine months and bets increase that the omicron COVID-19 variant will not hinder the global economic recovery.

Japan’s rose 1.08% by 9:18 PM ET (2:18 AM GMT) and South Korea’s rose 0.88%.

Australia’s index jumped 1.12%. Philip Lowe, Governor of Reserve Bank of Australia, will be speaking on Thursday.

Hong Kong’s inched down 0.07%.

China’s was up 0.27% and the gained 0.49%. Chinese data including the price indexes are due Thursday.

Dealing in Kaisa Group Holdings Ltd. (HK: Hong Kong) shares were. The list of Chinese developers that might not be able meet upcoming financial obligations grows.

U.S. share prices saw the largest gains in two years on Tuesday (March 2021), and U.S. Treasury yields rose across the curve. The benchmark 10 year yield fell to 1.5% while the 2-year yield reached its peak in March 2020.

Investors are regaining their risk appetite after omicron’s discovery introduced a bout of market volatility. Omicron cases are not overwhelming hospitals yet, but they have been reported. Pfizer In a South African study, the COVID-19 vaccine was shown to partially protect against this variant by BioNTech SE (NYSE:).

“This anecdotal evidence appears to have calmed financial markets, for now, as evidenced by the recovery in risk assets,” Commonwealth Bank of Australia strategist Carol Kong said in a note.

“But we caution against drawing conclusions from these early reports,” and unless omicron proves resistant to vaccines, “we expect the global economy will largely continue with its pre‑omicron recovery path,” the note added.

Another investor warned that volatility in the market might still be a problem. Geopolitical tensions are also on the rise, with U.S. President Joe Biden warning Russian counterpart Vladimir Putin of “strong” measures if Russia invades Ukraine.

DoubleLine Capital LP CEO Jeffrey Gundlach predicted “rough waters” ahead for financial markets as the U.S. Federal Reserve is set to accelerate asset tapering and hike interest rates earlier than expected. Goldman Sachs Group Inc. also warned dip buyers to proceed with caution amid the Fed’s hawkish stance as omicron spreads.

The central bank will also announce its policy decision in other news later in the day.

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