Stocks make modest gains in Tokyo, Hong Kong, Seoul
BEIJING — Asian stock markets followed Wall Street higher Wednesday after President Joe Biden reassured investors by calling for vaccinations and testing but no travel curbs in response to the omicron coronavirus variant.
The Nikkei 225 NIK, +0.16% in Tokyo advanced less than 0.2% and the Hang Seng HSI, +0.57% in Hong Kong rose 0.3%. The Shanghai Composite Index SHCOMP, -0.07% was flat.
The Kospi 180721, +0.32% in Seoul added 0.2% while Sydney’s S&P/ASX 200 XJO, +0.13% gained 0.2%. Benchmark indexes in Singapore STI, +0.08%, Taiwan Y9999, +0.21% and Indonesia JAKIDX, -0.38% advanced.
Wall Street rose, breaking a three-day decline and recovering the previous day’s losses.
Biden announced the government will provide 500 million free rapid-test kits and increase vaccination efforts but gave no indication of plans for travel bans or other restrictions that might disrupt the economy. Other governments in Asia and Europe have tightened travel controls or pushed back plans to relax curbs already in place.
Biden “provided some much-needed reassurances for markets,” Yeap Jun Rong of IG said in a report.
Traders were rattled by official statements that omicron was spreading faster than expected after markets had bid up prices of airline, cruise line, oil and other travel-related stocks on expectations tighter controls could be avoided.
That takes place against a backdrop of expectations for tighter U.S. monetary policy after the Federal Reserve indicated last week it will accelerate plans to wind down economic stimulus that has been boosting stock prices. The Fed changed course after inflation rose to a four-decade high of 6.8% in November.
Traders also are worried about the impact of global supply chain disruptions that are fueling fears of higher inflation.
On Wall Street, the S&P 500 SPX, +1.78% rose 1.8% to 4,649.23. The benchmark index is within 1.4% of its Dec. 10 all-time high.
The Dow Jones Industrial Average DJIA, +1.60% gained 1.6% to 35,492.70. The Nasdaq composite COMP, +2.40% gained 2.4% to 15,341.09.
In energy markets, benchmark U.S. crude CLG22, 0.41% climbed 59 cents to $71.71 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $2.89 on Tuesday to $71.12. Brent crude BRNG22, 0.28%, the price basis for international oils, advanced 61 cents to $74.59 per barrel in London. It gained $2.46 the previous session to $73.98.
The dollar USDJPY, 0.17% edged down to 114.10 yen from Tuesday’s 114.12 yen.