A man wearing a protective mask, against the backdrop of the coronavirus epidemic (COVID-19), walks past an electronic board showing graphs (above) of the Nikkei index in front of a brokerage house in Tokyo, Japan, March 10, 2022. REUTERS / Kim Kyung-Hoon
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HONG KONG, June 28 (Reuters) – Asian stocks rose in positive territory in Tuesday afternoon trading, driven by China’s decision to ease some quarantine requirements for international arrivals, with Hong Kong shares particularly supported.
MSCI’s broadest index for Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) rose 0.5% after spending most of the day in the red. The index has fallen 3.8% so far this month.
Health officials said on Tuesday that China would halve its quarantine period for COVID-19 for visitors from abroad by half to seven days, spending another three days at home. Read more
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Following the news, the Hong Kong index Hang Seng (.HSI) reversed its losses and jumped 0.85% in afternoon trading.
In China, the CSI300 blue chip index (.CSI300) was 1% higher, also returning earlier losses.
The sharp change in sentiment seemed to continue throughout the global day, with Euro Stoxx 50 futures in the region up 0.31%, German DAX futures up 0.2% and FTSE futures up 0.47%. US stock futures rose 0.46%.
“As local new infections decline further in June and restricting COVID to alleviate more, we expect the (Chinese) economy to continue to recover,” a BofA note said. “So, given COVID’s weak domestic demand and continued uncertainty, the road to recovery is likely to be uneven in the coming months.
Market sentiment was also fueled by an official’s remarks that Beijing would deploy tools to address economic challenges, as the outbreak of COVID-19 and the risks of war in Ukraine pose a threat to employment and price stability. Read more
Australian shares (.AXJO) rose 0.86%, while the Japanese stock index Nikkei (.N225) rose 0.66%.
US stocks ended a volatile trading session slightly lower on Monday with few catalysts to affect investor sentiment as they approached the half-year in which stock markets were hit by heightened fears of inflation and the tightening of Fed policy.
Interest rate-sensitive megacasettes such as Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Alphabet Inc (GOOGL.O) were the hardest hit on major US indexes.
The Dow Jones Industrial Average (.DJI) fell 0.2%, the S&P 500 (.SPX) lost 0.30% and the Nasdaq Composite (.IXIC) fell 0.72%.
Oil has continued to rise, with investors still assessing concerns about the economic slowdown amid fears of lost supplies from Russia amid sanctions over Ukraine’s conflict.
US crude rose 1.02% to $ 110.69 a barrel. Brent oil rose to 116.42 dollars per barrel.
“A lot of news about limited supplies has supported the (oil) market,” said analysts at the Commonwealth Bank of Australia. “Political unrest could cut supplies from several second-tier producers, Ecuador and Libya. And then there was the proposed price cap on Russian G-7 oil. “
In bond markets, government bond yields rose on Monday after data on capital and durable goods orders and as upcoming home sales came up more than the previous month.
The yield on the reference 10-year treasury bonds last reached 3.1828% on Tuesday, compared to the closing in the US of 3.194% on Monday. The two-year yield, which grew with traders’ expectations of higher interest rates on Fed funds, reached 3.0934%.
In addition, the dollar fell against major competitors as investors weighed expectations of inflation and rising interest rates. The dollar index, which tracks greenbacks against a basket of currencies of other major trading partners, fell to 103.96.
Gold was slightly higher, with the spot price trading at $ 1,825.79 an ounce.
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Report by Julie Ju; Edited by Sam Holmes
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