Lunar New Year Holidays May Have Helped Asia-Pacific Markets Rise

Must Read

Asia-Pacific markets traded higher during the Lunar New Year holidays, as observed by several experts. The gains followed a rally for tech stocks the week prior, countering the worry about the weakening US economy.

Asia-Pacific Markets

Most Asia-Pacific markets closed on positive notes before the Lunar New Year holiday, and Shanghai markets were closed for the whole week. CNBC correspondent Jihye Lee noted that the Australian S&P/ASX 200 closed at 7,490.4 on a 0.44 per cent increase, while New Zealand’s S&P/NZX 50 last traded slightly below the flatline.

Investors lowered their expectations for the US interest rate hikes significantly contributed to the drop in USD, allowing other markets to see stronger performances. However, several Fed officials provided optimistic comments indicating that the bank may raise rates much slower. China’s re-emergence after its stringent zero-Covid policy also contributed to the Asia-Pacific market’s performance prior to the holiday closure.

Lee also reported that “The Nikkei 225 rose 1.46% to end its session at 27,299.19, and the Topix gained 1.42% to close at 1,972.92. The Japanese yen strengthened 0.42% against the US dollar to 130.13, continuing to trade above 130 for the second consecutive day.”

Stephen innes spi Asset Management

Stephen Innes, head of trading and market strategy at SPI Asset Management, noted that “although most Asian markets are closed for Chinese Lunar New Year celebrations, Japanese and Australian stocks are picking up on the better mood from US investors and on expectations of China’s economy returning to some semblance of a pre-pandemic trend.”

Nasdaq Composite also saw a rise of more than two per cent in the US. This was driven by optimistic views that the Fed could slow down its interest rate hikes. The 10-year Japanese government bonds also maintained levels below the central bank’s upper ceiling of tolerance. Netflix significantly contributed to the tech and communications services stock rally, reporting a massive surge of subscribers, allowing for an 8.5 per cent increase in shares.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img