Asian stock markets rise in hopes of a better-than-expected regional economic recovery supported by the rebound in China.
Most emerging Asian stock markets gained ground on Thursday, with analysts pointing out that investors reshuffled their portfolios amid anticipation of a better-than-expected economic recovery in the region, supported by the steady rebound in the market. China.
Despite the weakness of the broader markets and a poor finish on Wall Street overnight amid fears of delayed fiscal stimulus, Asian stock indexes in China, Indonesia and the Philippines rose 0.2 to 0.6%.
“With no headlines or data to drive markets in Asia, investors appear to be using the lull to reduce risk in some markets and readjust weightings in others,” said Jeffrey Halley, senior market analyst Asia-Pacific at OANDA.
The Asian Development Bank’s (ADB) review of its growth forecast for the region’s developing economies for 2020 has sparked some positivity in the markets. recovery.
“November data from China had continued to bolster the image of the recovery and improving global demand, providing support to Asian markets,” said Jingyi Pan, a Singapore-based market strategist with the IG financial services company.
With the decrease in coronavirus cases, the Chinese economy has stabilized after the crisis, with the most crucial economic indicators such as trade and its manufacturing index signaling a rapid recovery of
the second largest economy in the world.
In Japan, SoftBank rose nearly 11% after the tech giant posted an $ 11.2 billion gain in the value of its stake in DoorDash Inc after the successful stock market debut of the American food delivery app Wednesday.
The US dollar was a bit weaker during the Asian trading session, supporting local currencies. However, the South Korean won fell 0.1% as the country reported 682 new cases of coronavirus infections that threaten to overwhelm its economy and healthcare system. Authorities nationwide were scrambling to build hospital beds in shipping containers on Thursday to ease pressure on medical facilities stretched by the latest wave of infections. The Philippine peso strengthened 0.3% after its October trade deficit stood at $ 1.78 billion, significantly lower than last year’s figure of $ 3.25 billion.
ING analysts said in a note that this, combined with weak demand for corporate dollars, should support the currency in the near term.
Financial markets in Thailand have been closed due to holidays.