HONG KONG — Asian markets mostly rose Wednesday as investors
tried to assess whether the global recovery will be resilient enough to
withstand the fast-spreading Delta COVID variant.
اضافة اعلان
However, optimism continues to be tested by the stuttering rollout of
vaccines and a spike in infections in some countries as well as China's drive
to tighten its grip on the world's number two economy with a swathe of new
regulations for private enterprises.
Federal Reserve boss Jerome Powell's indication Friday that the central bank
will take it easy in winding back its ultra-loose monetary policy — and even
more cautious in hiking interest rates — has helped fuel a healthy run-up this
week.
Still, Wall Street finished Tuesday on a tepid note after a closely watched
survey showed US consumer confidence saw a sharp drop in August to its lowest
level in six months owing to concerns about Delta and surging prices.
"A combination of higher prices — still much in evidence across a
swathe of incoming US data -- and doubtless too the
resurgence in Delta-strain COVID-19
infections, and hospitalizations, are taking a toll," said Ray Attrill of
National Australia Bank.
"How temporary this will prove to be of course remains to be
seen."
While the United States remains largely open thanks to a successful vaccine
rollout, other countries that have administered fewer jabs are struggling with
fresh waves of COVID and are being forced to impose strict containment
measures.
This has tempered hopes that the blockbuster economic recovery seen at the
start of the year can be maintained.
Asia started the day on a mixed note, but most major markets recovered in
the afternoon, with traders appearing to brush off data indicating Chinese
factory activity contracted last month.
The Caixin purchasing managers index reading came a day after an official
report suggesting manufacturing activity barely growing and services sector
activity shrinking.
Tokyo, Hong Kong, Shanghai, Singapore, Seoul, and Wellington were all in
positive territory, but Sydney, Taipei, Manila, Mumbai, Bangkok, and Jakarta
fell.
London, Paris, and Frankfurt were all up in the morning.
Focus is now on the release Friday of US jobs data, which could have a huge
bearing on when the Fed decides to start winding down its bond-buying financial
support program.
Oil prices rose ahead of the monthly meeting of OPEC and other producers who
are expected to continue raising output with the global recovery largely still
on track.
Industry body the American Petroleum Institute said stockpiles rose more
than 2 million barrels last week, according to Bloomberg News, and observers
expect the market to wobble over the coming months.
"The market is likely to remain volatile — we not only have the OPEC
meeting, but hurricane season is also upon us," Howie Lee, at
Oversea-Chinese Banking Corp, said.
"Brent is still expected to trend within $70 to $75 for now, but the
near-term volatility means it may overshoot on both ends momentarily in the
coming week or two."
Read more Business news
.jpg)
.jpg)
