Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Asian Stocks Up, but “Rough Waters” Remain

Stock MarketsDec 08, 2021 10:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – 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 Nikkei 225 rose 1.08% by 9:18 PM ET (2:18 AM GMT) and South Korea’s KOSPI rose 0.88%.

In Australia, the ASX 200 jumped 1.12%, with Reserve Bank of Australia Governor Philip Lowe due to speak on Thursday.

Hong Kong’s Hang Seng Index inched down 0.07%.

China’s Shanghai Composite was up 0.27% and the Shenzhen Component gained 0.49%. Chinese data, including the consumer and producer price indexes, is due on Thursday.

Trading in Kaisa Group Holdings Ltd.'s (HK:1638) Hong Kong shares was suspended on Wednesday, and the list of Chinese developers who might not be able to meet upcoming financial obligations is growing.

U.S. shares recorded their biggest gains since March 2021 on Tuesday, and U.S. Treasury yields increased across the curve. The two-year yield hit its highest level since March 2020 and the benchmark 10-year yield moved back toward 1.5%.

Investors are regaining their risk appetite after omicron’s discovery introduced a bout of market volatility. Omicron cases have not yet overwhelmed hospitals, and the Pfizer Inc. (NYSE:PFE)/BioNTech SE (F:22UAy) COVID-19 vaccine has been shown to provide partial protection against the variant in a South African study.

“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.

Other investors also warned that market volatility might not be done quite yet. 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.

In other central bank news, the Reserve Bank of India will hand down its policy decision later in the day.

Asian Stocks Up, but “Rough Waters” Remain

Related Articles

Affirm Holdings Rallies After DA Davidson Upgrade
Affirm Holdings Rallies After DA Davidson Upgrade By - Jan 29, 2022

 By Sam Boughedda — Fintech company Affirm Holdings Inc (NASDAQ:AFRM) shares surged 16% Friday on the back of an upgrade by DA Davidson. Analyst Christopher...

S&P 500 Rides Apple Rally Higher as Tech Fights Back
S&P 500 Rides Apple Rally Higher as Tech Fights Back By - Jan 29, 2022

By Yasin Ebrahim – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email