Asian stocks were mostly higher on Monday, but fears of further waves of coronavirus outbreaks clouded the region’s economic outlook, tempering the recovery.
Japan’s Nikkei 225 benchmark rose 0.3% to 30.35.62. The Australian S & P / ASX 200 gained 0.7% to 7,393.60. South Korea’s Kospi added 0.6% to 3,142.08. The Hong Kong Hang Seng gained 1.2% to 24,479.52, while the Shanghai Composite lost 0.5% to 3,595.97.
Japan’s ruling party is holding elections later this week to choose a leader, who is likely to succeed Yoshihide Suga as prime minister after just one year in office. All the candidates are certain to stick to the nation’s pro-American policies, despite some nuance in their opinions.
They also all promise to increase public spending in an attempt to catalyze the growth of the world’s third-largest economy.
Analysts also say that Japan’s central bank’s Tankan economic survey for the third quarter, due out on Friday, will likely show worsening business conditions due to various supply chain disruptions and new outbreaks of COVID- 19 in many regions.
Although parts of the world have lifted COVID-19 restrictions and are gradually returning to normal life, concerns remain in Asia about new waves of infections as vaccine roll-out has been slower than the West in some. country.
In Singapore, new COVID-19 restrictions have been launched in an attempt to curb the spread of the virus, as new cases daily exceeded the city-state peak reached in April 2020.
Overall, the manufacturing sector could remain resilient as shown by previous rounds of restrictions, but the service sector could come under pressure. That said, previous trade adjustments and a softer tightening from past restraint phases may help reduce some impacts, ”said Yeap Jun Rong, market strategist at IG in Singapore.
Wall Street closed a hectic week of trading with a mixed finish for major stock indexes, although the S&P 500 managed its first weekly gain in three weeks.
The S&P 500 rose 0.1% to 4,455.48 and is now less than 1.9% of the all-time high it hit on September 2. The Dow Jones Industrial Average added 0.1% to 34,798. The Nasdaq slipped less than 0.1% to 15,047.70, while the Russell 2000 fell 0.5% to 2,248.07.
U.S. markets had a tough September and investors could face greater volatility given various concerns including COVID-19 and its lingering impact on the economy, as well as a slow recovery in the US market. ‘use.
Concerns over struggling Chinese real estate developer Evergrande still weigh on global markets. Some Chinese banks on Friday revealed what they were owed by Evergrande, seeking to allay fears of financial turmoil as it grapples with debt of less than $ 310 billion.
In energy trading, US benchmark crude added $ 1.17 to $ 75.15 a barrel in electronic trading on the New York Mercantile Exchange. It rose 68 cents to $ 73.98 a barrel on Friday. Brent crude, the international standard, gained $ 1.29 to $ 79.38 a barrel.
In currency trading, the US dollar edged down to 110.69 Japanese yen from 110.71 yen. The euro cost $ 1.1724, compared to $ 1.1722.