Asia-Pacific equities edged up after stocks rebounded on Wall Street, where reduced volatility eased pressure on hedge funds that had been under siege by retail traders.
Mainland China’s CSI 300 index of companies listed in Shanghai and Shenzhen rose 0.8% early Friday, while Hong Kong’s Hang Seng rose 1.1%. Japan’s benchmark Topix index rose 0.1 percent and Australia’s S & P / ASX 200 rose 0.5 percent.
Overnight in the United States, the S&P 500 Index increased by 1 percent to recover some of the 2.6% drop in Wednesday’s session. The technology-focused Nasdaq Composite rose 0.5%.
The gains on Wall Street came as Cboe’s Vix index, which measures implied volatility in the U.S. market, fell back to 30 Thursday after hitting its highest level since November the previous day.
This week’s rise in volatility was partly driven by a rapid rally in stocks targeted by Reddit users which forced some hedge funds to leave their positions.
Registered in New York GameStop game retailer has become the center of a battle between day traders and hedge funds. Its stock ended Thursday’s session down 40% after online brokerage Robinhood restricted retail in GameStop and other actions popular with small investors.
“The retail horde is going nowhere and maybe not having a daily job,” said Michael Every, global strategist at Rabobank, an investment bank. “They have been defeated here, but can stack any stock or asset they choose.”
Robinhood fell out on Thursday for press banks in order to consolidate its capital and restore GameStop stock trading, which has caused GameStop to increase by more than 50 percent on after-hours trading.
Futures on the S&P 500 fell 0.5% during trading in Asia, while those on London’s FTSE 100 fell 0.8%.