Lending markets

Asian markets follow US gains after tough week

Asian markets mostly rose on Friday after a tough week dominated by hawkish tone from the US Federal Reserve, which put it on an aggressive tightening path.

After a slow start, the region managed to take the lead on Wall Street, which recovered from steep intraday losses on Thursday to end on a positive note, after plunging in previous sessions as traders worried. the prospect of rising interest rates.

Although the Fed has made clear that it intends to act more decisively to contain inflation, which has been high for 40 years, by raising borrowing costs and offloading bond holdings, analysts have said greater clarity on policy was welcome.

Photo: AP

Markets have come under enormous pressure this year as the end of super-cheap central bank liquidity, a COVID-19-fueled slowdown in China’s economic activity, war in Ukraine and surging inflation came together in a perfect storm.

In Taiwan, the TAIEX closed up 105.91 points, or 0.62%, at 17,284.54, after trading between 17,120.40 and 17,316.69. Revenue totaled NT$245.664 billion (US$8.5 billion). The index fell 1.93% from the previous week.

Hong Kong’s Hang Seng index gained 0.29% to 21,872.01, but fell 0.76% from the previous week.

The Shanghai Composite Index rose 0.47% to 3,251.85, down 0.94% for the week.

In Japan, the Nikkei 225 rose 0.36% to 26,985.80, a weekly loss of 2.46%, while the broader TOPIX gained 0.21% to 1,896.79 but was down 2.44% compared to the previous week.

Australia’s S&P/ASX 200 rose 0.47% to 7,478, down 0.21% on the week, while India’s SENSEX jumped 0.7% to 59,447.18 and recorded a gain 0.29% weekly.

Oanda Corp analyst Jeffrey Halley said traders are “increasingly wary of China as Shanghai lockdown drags on” due to the fast-spreading Omicron variant of SARS-CoV-2 .

“China’s ‘COVID zero’ policy continues to be its Achilles’ heel, although there are plenty of other reasons to be a little cautious,” he said in a note. “A serious spread outside its financial and commercial center to other major cities will be a big headwind for China’s growth, Chinese equities and, by default, eventually much of Asia.”

Additional reports by staff writer, with CNA

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