Asian Stocks Up, but Omicron Threat Caps Overall Gains -Breaking
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By Gina Lee
Investing.com – Asia Pacific stocks were mostly up on Tuesday morning, recovering from the previous session’s battering. The positive investor sentiment was reflected in the small movements overall, despite surging global cases of omicron COVID-19.
Japan’s jumped 2.07% by 10:21 PM ET (3:21 AM GMT) and South Korea’s was up 0.44%.
The Australian gained 0.622%. The minutes of the latest meeting were released earlier today. They stated that asset tapering would be initiated at the 2022 first meeting and ended in May. This is in line with the existing forecasts.
Hong Kong’s was up 0.48%.
China’s was up 0.43% while the inched down 0.03%. Authorities are urging large private and state-owned property companies to acquire real estate projects from troubled developers, in order to reduce the risks posed to the economy by the latter’s mounting debt.
The mood in Asian trading was brighter as the U.S. counterpart recovered some of its losses. Volumes were still low as the holiday season approached.
The U.S. stock market had fallen more than 1 percent after President Joe Biden’s Social Spending and Climate Bill was ruled a major blow. Senator Joe Manchin said on Sunday that he will not support Biden’s Build Back Better package, a $1.75 trillion domestic investment bill.
Goldman Sachs Group Inc. economists cut their U.S. growth forecasts after Manchin’s comments, while the recorded its biggest three-day drop since September 2021.
“There’s kind of two dynamics going on. Most important is the likely reduction in liquidity. On top of that, you have the omicron concern,” Infrastructure Capital Management chief executive officer Jay Hatfield told Bloomberg.
Another investor also pointed out the risk posed to omicron.
COVID-19 continues to pose a risk to the world’s economy. Initial evidence indicates that omicron may be more easily transmitted, but causes less severe illnesses than previous versions,” CBA analysts stated in a note.
Boris Johnson, the British Prime Minister, stated Monday that he is ready to relax restrictive measures should necessary. The variant has been spreading quickly in Europe. Federal estimates show that 73% of U.S. sequenced cases are now omicron.
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