21 Dec 2021
Omicron Threat Persists Even as Asian Stocks Make Slight Recovery
The Index Today
Asian shares soared on Tuesday despite Beijing’s decision to fund aggrieved Chinese real estate companies. Despite that, the Omicron variant continues to pose a major threat to the market, much to the consternation of investors.
U.S. stocks suffered a 1% drop owing to increasing COVID-19 cases and the blow sustained by Biden’s $1.5 trillion tax-and-spending bill.
MSCI’s index indicated a rise of 0.4% among Asia-Pacific shares outside Japan. After suffering two consecutive drops, Japan’s Nikkei experienced a 2% increase, most notably by Tokyo Electron and Advantest. The Shanghai Composite Index surged by 0.67% while the CSI300 index increased by 0.45%.
However, according to economists at CBA, "COVID remains a threat to the global economy. Initial evidence suggests the Omicron variant is more transmissible but results in less severe illness compared to previous variants."