HONG KONG- Asian shares advanced on Tuesday, shrugging off a bruising Wall Street session, as Chinese markets cheered Beijing’s move to help troubled property firms, although surging cases of the Omicron coronavirus variant remain a worry for investors.
US stock indexes retreated more than 1 percent as positive COVID-19 case counts rose and President Joe Biden’s social spending and climate bill hit a significant setback.
The negative mood brightened somewhat in Asian hours with European and US stock futures up and some assets battered in Monday’s selling finding buyers, although volumes were thin heading into year-end holidays.
European markets appeared set for a higher open with the pan-region Euro Stoxx 50 futures up 1.1 percent. German DAX futures rose 0.93 percent while London’s FTSE futures added 1.02 percent. US stock futures, the S&P 500 e-minis, were up 0.72 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.81 percent after declining on Monday to the lowest in a year.
Japan’s Nikkei rose 2 percent after two sessions of decline with chip-related Tokyo Electron 8035.T and Advantest leading the pack, as investors bought into Monday’s heavy selloff. Australian stocks were up 0.9 percent.
While the widespread selling in global shares appeared to have eased, investors are still concerned about Omicron risks.
“COVID remains a threat to the global economy. Initial evidence suggests the Omicron variant is more transmissible but results in less severe illness compared to previous variants,” economists at CBA wrote in a note.
Elsewhere in Asia, China and Hong Kong equities rose on Tuesday, with real estate stocks extending their rebound. China’s blue-chip CSI300 index was 0.45 percent higher while the Shanghai Composite Index rose 0.67 percent. Hong Kong’s Hang Seng index added 0.58 percent.
