17 Mar 2022
Asian Stocks Rise amid Retreating Concerns over Fed, China, and the Ukraine Crisis
The Index Today
Asian shares climbed in the stock markets on Thursday with Hong Kong making up the lead amid fading fears over the Fed rate hikes and China’s latest COVID-19 outbreak, supported by progressing peace talks between Ukraine and Russia.
According to Reuters, Hong Kong’s Hang Seng Index edged higher by over 5%, extending gains from Wednesday’s 9%. Notably, even run-down sectors in the country, including real estate and tech soared. Chinese blue chips gained 2.3%, continuing its 4.3% bounce back from yesterday. Japan also witnessed an upswing with the Nikkei rising by 3.5%, hitting a two-week high. The MSCI index of shares in the region also climbed by 3%.
The U.S. Federal Reserve instituted its first interest rate hike for the year on Wednesday in what is regarded as its most aggressive move in decades to counter mounting inflation, as diplomatic talks between Ukraine and Russia continue to show progress. Investor fears over the present COVID-19 surge in China were alleviated after Vice Premier Liu He announced the government’s plans to introduce a financial stimulus strategy to help revive the economy including the more beleaguered real estate and tech sectors.