Shares in Asia’s emerging markets gained on hopes of an economic recovery, in a week marred by coronavirus resurgence fears, rising Sino-US tensions and the lira’s slump.
MSCI’s ex-Japan Asia index rose 1.5 percent after hitting a near three-month low on Thursday. The Shanghai Composite Index gained 1.5 percent, snapping a three-day losing streak.
In tandem with the broader gains, stocks in Taiwan, India, Indonesia .JKSE and South Korea climbed nearly 1 percent.
India was set for a second-straight weekly fall, while Indonesia eyed its biggest weekly fall in seven. South Korea, meanwhile, eked out a gain of 0.049 percent over the week.
Boosting recovery hopes, US Labor Department data showed the number of Americans filing new claims for unemployment benefits dropped to a one-year low last week, while new World Bank forecasts show China’s economy is set to expand by 8.1 percent this year.
The International Monetary Fund upgraded South Korea’s 2021 growth forecast to 3.6 percent from 3.1 percent previously, supported by a rebound in tech exports and added fiscal stimulus.
However, concerns remained over the broader outlook for equities as a Reuters poll showed another bond market sell-off is likely in the next three months.
Escalating tensions between the United States and Beijing — both key trading partners of countries in the region — showed no signs of easing.