Asian markets crept ahead in thin trade on Friday, extending their rally this week as fears over the impact of Omicron coronavirus variant faded and further positive economic data from the United States cheered investors.
Studies indicating Omicron infections are less likely to result in hospitalisation and US approval of drugs from Merck and Pfizer to add to a growing arsenal of weapons against Covid have increased confidence that the pandemic will have less impact on the global economy.
“Omicron is looking more like a short-term disruption to the economic outlook and not a destructive headwind that knocks the economy off its course,” OANDA’s Edward Moya said.
On Wall Street, the S&P 500 ended the last session before the holiday weekend at a fresh record following a raft of mostly decent US economic data.
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Commerce Department data showed consumer spending climbed in November, though at a slower rate, and new home sales rose.
Jobless benefit claims held steady from the prior week and orders for big-ticket manufactured goods climbed, though mostly due to aircraft.
Inflation, however, posted the biggest increase in nearly four decades, illustrating the delicate balancing act the Federal Reserve faces between reining in inflationary pressures and keeping the economic recovery on track.
The optimistic mood carried over to Asia, with most markets rising, although in quiet trade with several stock exchanges shut or on shortened hours ahead of the Christmas holiday.
Shanghai And Tokyo Retreat
Hong Kong edged up while Seoul, Taipei and Jakarta also enjoyed gains. Shanghai was among the few losers, ending down and Tokyo closed marginally lower too.
The Hang Seng Index closed up 0.13%, or 30.12 points, at 23,223.76. The Shanghai Composite Index retreated 0.70%, or 25.29 points, to 3,618.05, while the Shenzhen Composite Index on China’s second exchange slid 1.30%, or 32.78 points, to 2,491.96.
The benchmark Nikkei 225 index eased 0.05%, or 15.78 points, to 28,782.59, while the broader Topix index slipped 0.13%, or 2.65 points, to 1,986.78.
European markets were mixed, with London edging higher in opening trade while Paris slipped. Frankfurt was closed for the holiday weekend.
Key figures around 0815 GMT
Tokyo > Nikkei 225: DOWN 0.1% at 28,782.59 (close)
Hong Kong > Hang Seng Index: UP 0.1% at 23,223.76 (close)
Shanghai > Composite: DOWN 0.7% at 3,618.05 (close)
New York > Dow: UP 0.5% at 35,950.56 (close)
London > FTSE 100: UP 0.1% at 7,377.21
- AFP with additional editing by Sean O’Meara
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