Array
-Asian markets built on their positive start to the year Wednesday as investors brushed off a drop on Wall Street and weighed China’s reopening moves with surging Covid cases, while recession concerns kept any rally in check.
China’s shift out of almost three years of zero-Covid has been widely welcomed but the breakneck speed at which authorities have lifted restrictions has led to an explosion of cases across the country, dealing another battering to economic activity.
However, analysts said concerns about the impact of the mass outbreak were playing off against optimism that the long-term outlook was positive as infections eventually come down and businesses restart.
Hong Kong rose more than one percent again Wednesday, and Shanghai also enjoyed a second straight day of gains.
Stephen Innes at SPI Asset Management said: “With growing expectations for more back-loaded positive ‘reopening impulse’ in the second quarter, this could be a classic case of investors needing to wear some short-term pain for longer-term gain.
