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Asian stock markets advance, dollar soft as investors shrug off Omicron worries
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Asian stock markets advance, dollar soft as investors shrug off Omicron worries
Dec 22, 2021 11:13 PM

Asian stock markets continued to rise on Thursday in early trading, as the investors shrugged off fear of Omicron spread. Markets took positive ques about the impact of the omicron variant of COVID-19 and US economic data.

Share Market Live

NSE

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, a third successive session of gains after taking a jolt on Monday when fears about the new strain of coronavirus gripped markets and pushed investors to safe haven assets.

Japan's Nikkei gained 0.3 percent.

"The unpredictable path of the pandemic and its related impacts on growth and inflation continue to dominate investor risk appetite," Reuters quoted as saying David Chao global market strategist Asia Pacific at Invesco.

"The recent health data from the UK and other places around the world indicate that the worst case is unlikely: even though transmission rates are reportedly higher, this variant seems less virulent and less prone to cause serious illnesses or death."

The risk of needing to stay in hospital for patients with the Omicron variant of COVID-19 is 40 percent to 45 percent lower than for patients with the Delta variant, according to research by London's Imperial College published on Wednesday.

Overnight the Dow Jones Industrial Average rose 0.74 percent, the S&P 500 gained 1.02 percent, and the Nasdaq Composite added 1.18 percent, after data showed US consumer confidence improved further in December, and the White House said it was resuming talks on a massive social spending and climate change bill with holdout senator Joe Manchin.

However, while markets on both sides of the Pacific have gained this week, MSCI's broad Asian benchmark's gains began from Monday's year low, while US benchmarks are in sight of last month's record highs.

Strong economic growth in the United States and jitters sparked by sweeping regulatory changes in China earlier this year which roiled shares in industries from technology, to property have driven investment away from Asia.

Hong Kong's Hang Seng Index has been hard hit, falling 15 percent in 2021, which would be its worst year since 2011.

On Thursday, the benchmark rose 0.45 percent, though index constituent JD.com's shares dropped as much as 9 percent after the ecommerce company's largest shareholder Tencent said it would give most of its $16.4 billion stake to its own shareholders as a dividend.

In currency markets, in line with the "risk on" mood the dollar index was at 96.042, not far from the overnight low of 96.020, touched for the first time since Dec. 17.

Recent losses have been fairly broad-based; the euro has gained for the last four sessions, and the Australian dollar - often seen as proxy for risk appetite - is up 1.1% on the week.

The benchmark 10-year yield was last at 1.4145 percent, comfortably in the middle of its recent range.

Oil prices also rose, again in line with optimism about the state of the global economy, also helped by a larger-than-expected drawdown in US inventories Wednesday.

Brent crude futures rose 0.3% to $75.53 a barrel. US West Texas Intermediate (WTI) crude futures rose 0.38 percent to $73.04.

Spot gold was steady at $1,804 an ounce, above the symbolic $1,800 level, helped by the weaker dollar.

-With agency inputs

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