SYDNEY- Asian share markets were mostly in positive territory on Wednesday despite rising COVID-19 cases in mainland China leaving investors uncertain over how much the fresh outbreaks could slow the reopening of the world’s second-largest economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3 percent, after US stocks ended the previous session with gains. The index is up 12 percent so far this month.
Australian shares were up 0.7 percent, with most gains coming from mining and resources giants as a result of higher oil prices. Japan’s stock market was closed for a national holiday.
New Zealand’s central bank raised interest rates by 75 basis points – its largest ever move – on Wednesday to a near 14-year high of 4.25 percent and flagged more hikes are on the way as it struggles to contain stubbornly high inflation.
Hong Kong’s Hang Seng Index was up 0.6 percent in early trade while China’s CSI300 Index opened broadly flat.
China on Wednesday reported 29,157 new COVID infections for Nov. 22, according to the National Health Commission, compared with 28,127 new cases a day earlier. Case numbers in Beijing and Shanghai are steadily rising, prompting authorities to close some facilities.
“The biggest story for investors in Asia is still the China reopening,” said Suresh Tantia, Credit Suisse’s senior investment strategist in Singapore.
“We had seen China markets rally up to 20 percent but those expectations are being dialled back, we think a reopening will be a slower process and will not be done in a hurry. That means a lot of investors are trimming their exposure, cutting their losses or booking any profits they might have made on China.”
Meanwhile the release of US Federal Reserve minutes from its November policy meeting later on Wednesday is being keenly awaited by investors as they look for insight of how officials view economic conditions.
The Dow Jones Industrial Average rose 1.2 percent to 34,098.1 on Tuesday, the S&P 500 gained 1.4 percent to 4,003.58 and the Nasdaq Composite added 1.4 percent to 11,174.41. Energy stocks led the gains, stoked by rising oil prices.
