Asian shares rose Tuesday, partly on bargain-hunting from the recent global market falls amid continuing pessimism about the conronavirus pandemic.
Japan’s benchmark Nikkei 225 surged 2.1% in morning trading, while South Korea’s Kospi gained 1.2%. Australia’s S&P/ASX 200 added 0.4%. Hong Kong’s Hang Seng jumped 1.3% , while the Shanghai Composite was little changed. Stocks dipped in Indonesia but made strong gains in Taiwan and Singapore
Regional markets shrugged off the latest gross domestic product data out of Japan, showing the world’s third largest economy contracted at an annualized rate of 5.1% in January-March, its worst pace since World War II. Analysts had expected the GDP results and don’t see the situation improving soon.
Yeap Jung Rong, market strategist at IG in Singapore, said Asian markets were seeking “to rebound from weakness over concerns on virus resurgences.” Although Asia has fared better in curbing infections and COVID-19 related deaths, compared to the U.S. and parts of Europe, worries have been growing about recent surges in coronavirus cases.
U.S. stocks slipped on Monday, tacking more losses onto last week’s stumble, as worries about inflation continue to dog Wall Street.
The S&P 500 dipped 10.56, or 0.3%, to 4,163.29, with tech stocks and other former market darlings once again taking the brunt of the losses. The benchmark index is coming off a 1.4% weekly drop from its record high, which would have been even worse if not for a late rebound.
The Dow Jones Industrial Average fell 54.34, or 0.2%, to 34,327.79, while the Nasdaq composite lost 50.93, or 0.4%, to 13,379.05.
In energy trading, benchmark U.S. crude added 21 cents to $66.48 a barrel. Brent crude the international standard, rose 25 cents to $69.71 a barrel.
In currency trading, the U.S. dollar edged down to 109.15 Japanese yen from 109.27 yen.