The COVID Delta variant is here but it hasn’t slowed Asian shares. The markets kept up a good lead in Shanghai, Tokyo, Hong Kong, and Sydney today. At the end of last week we saw Wall Street’s benchmark S&P 500 index rise by 0.4% on the weekly.
“Wall Street shrugged off ‘delta variant’ concerns,” remarked Mizuho Bank today. “Futures suggest that the optimism will spill over into Asia’s equity trading session.”
The Shanghai Composite was up by about 1% to 3,558.13. This was later on after the Chinese central bank decided that commercial banks must hold fewer reserves on last Friday. This liberated cash for lending. This came on the heels of an observation that Chinese economic recovery may be slowing. The Nikkei 225 in Tokyo inclined by 2.3% up to 28,580.78. Meanwhile the Hang Seng in Hong Kong surged 0.5% up to 27,482.85.
The Kospi Index went up today 1% up to 3,247.13 while Sydney’s S&P-ASX 200 inclined 0.7% up to 7,326.30. New Zealand and Southeast Asian markets kept right on gaining as well. Last week Friday the S&P 500 index rose 1.1% to a new record of 4,369.55.
The Dow Jones Industrial Average made headway and rose 1.3% to 34,870.1. The Nasdaq composite gained a good 1% and rose to 14,701.92. Investors are of two minds about the Delta variant of COVID and its impact on the economy. Recently the president of the European Central Bank advised investors to get ready for more direction on monetary policy that should come at the end of July.
The Federal Reserve yanked the rug from underneath investors today also. They moved up the potential beginning of interest rate increases to late 2023. MetaNews is monitoring these events and the spread of delta variant. The COVID Delta variant is here but it hasn’t slowed Asian shares.