HONG KONG- Asian stocks were firmer on Tuesday following Wall Street’s record highs on its first trading day of 2022, despite worries that the widespread Omicron COVID-19 variant could put the brakes on global economic recovery.
MSCI’s gauge of Asia Pacific stocks outside Japan was up 0.67 percent in the morning sessions.
Australia’s S&P/ASX 200 climbed 1.15 percent, boosted by energy and mining stocks while Japan’s Nikkei 225 gained 1.25 percent.
Hong Kong’s Hang Seng Index and China’s benchmark CSI300 Index opened up 0.5 percent and 0.25 percent, respectively.
“As we start 2022, markets seem to have retained memories of 2021 and put Omicron in the backdrop with focus on Fed rate hikes leading to higher UST yields and underpinning USD strength alongside continued buoyancy in equities,” said Mizuho Bank in a Tuesday note.
Major Wall Street indexes scored record closing highs on Monday, even as the Omicron variant of the coronavirus pushed COVID-19 cases to fresh peaks in the world’s largest economy.
“Markets are focusing more on the likely positive earnings numbers from US in the fourth quarter. We are firmly of the view the US is seeing boom conditions and a very tight labor market which will boost household incomes,” said John Milroy, an Ord Minnett advisor in Sydney.
“…investors are keeping a close watch on inflation and how the Fed may respond if it proves to be other than transitory,” he said.
The Dow Jones Industrial Average rose 0.68 percent, the S&P 500 gained 0.64 percent and the Nasdaq Composite added 1.2 percent.
