Asia stock markets rally

China eases Covid restrictions

Asian stock markets are rallying today, especially under-pressure Chinese ones, as the price of oil fell overnight, and China eased isolation conditions domestically. China covid cases have fallen to around 3,000, and, most significantly, the government has shortened post-infection isolation requirements.

Overnight, US markets gorged themselves on lower oil prices as readily as they have convinced themselves that Ukraine-Russia talks will bear fruit recently. The buy-the-dippers were out in force, unwinding the previous day’s selloffs. Unfortunately, oil is also rallying in Asia today as well, tempering gains across the region.

The S&P 500 rose an impressive 2.15%, while the Nasdaq rocketed 2.90% higher, and the Dow Jones rallied by 1.86%. US futures in Asia have eased by a modest 0.15% as short-term money books some profits. In Japan, the Nikkei 225 is 1.50% higher, with South Korea’s Kospi up 0.75%.

China markets have given back some early gains but still remain in respectably positive territory. The Shanghai Composite has risen 1.10%, with the CSI 300 rallying 1.60%, and Hong Kong climbing 1.22% higher. Singapore has risen by 1.20%, Kuala Lumpur by 0.30%, Jakarta by 0.50%, but Taipei has eased by -0.30%. Australian markets are also rallying modestly, the ASX 200 and All Ordinaries climbing by 0.90%.

Gains today will be limited across Asia, Europe, and the US ahead of the FOMC policy decision this evening. The Fed will be raising rates by 0.25%, but no less important is how hawkish, or not, the FOMC is around future rate hikes.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Jeffrey Halley

Jeffrey Halley

Senior Market Analyst, Asia Pacific
With more than 30 years of FX experience – from spot/margin trading and NDFs through to currency options and futures – Jeffrey Halley is OANDA’s senior market analyst for Asia Pacific, responsible for providing timely and relevant macro analysis covering a wide range of asset classes. He has previously worked with leading institutions such as Saxo Capital Markets, DynexCorp Currency Portfolio Management, IG, IFX, Fimat Internationale Banque, HSBC and Barclays. A highly sought-after analyst, Jeffrey has appeared on a wide range of global news channels including Bloomberg, BBC, Reuters, CNBC, MSN, Sky TV, Channel News Asia as well as in leading print publications including the New York Times and The Wall Street Journal, among others. He was born in New Zealand and holds an MBA from the Cass Business School.
Jeffrey Halley
Jeffrey Halley

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