A screen shows the Nikkei Index after a ceremony marking the end of trading in 2021 on the Tokyo Stock Exchange (TSE) in Tokyo, Japan on December 30, 2021. REUTERS / Kim Kyung-Hoon

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HONG KONG, Jan.4 (Reuters) – Asian stocks were largely in the spotlight on Tuesday after record highs on Wall Street on its first trading day of 2022, despite fears that the widespread Omicron variant COVID- 19 hamper the global economic recovery.

Europe and the US also appear poised to reopen with FTSE futures gaining 0.98% and E-mini futures for the S&P 500 index rising 0.24%.

The Australian S & P / ASX 200 (.AXJO) closed 2.01% higher as its metals and mining stocks hit a 4-month high. Japan’s Nikkei 225 (.N225) also widened its morning gains to rise 1.78%.

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The MSCI scale of Asia-Pacific ex-Japan stocks (.MIAPJ0000PUS) rose 0.4%.

“As we enter 2022, the markets seem to have retained memories of 2021 and put Omicron as a backdrop by focusing on Fed rate hikes leading to higher UST yields and supporting the strength of the US dollar. as well as the continued dynamism of stocks, ”Mizuho Bank said in a note on Tuesday.

Hong Kong’s Hang Seng Index (.HSI), however, fell 0.36% after China’s cybersecurity watchdog announced official rules that will strengthen oversight of how its platform companies plan to register abroad or use algorithms, but have recovered the losses at the start of the afternoon session. The Hong Kong Technology Index (.HSTECH) fell 1.44% on the news. Read more

China’s benchmark CSI300 (.CSI300) slipped 0.68%, dragged down by tech stocks.

Major Wall Street indices hit record closing highs on Monday, even as the Omicron variant of the coronavirus pushed COVID-19 cases to new highs in the world’s largest economy. Read more

“The markets are focusing more on the likely earnings of the United States in the fourth quarter. We have a firm belief that the United States is experiencing boom conditions and a very tight labor market that will increase household incomes,” said John Milroy, an Ord Minnett. advisor in Sydney.

“… investors are watching inflation closely and how the Fed might react if it turns out to be other than transitory,” he said.

The United States will release its data on employment and the purchasing managers index (PMI) this week. China is due to announce its trade data on Friday.

“US employment data will be the key indicator to assess whether the Fed follows through on its planned rate hikes in 2022,” BlackRock said in a note Tuesday.

“A series of purchasing managers’ indices should give investors a sense of the momentum of the reboot. China trade data will show whether the supply bottlenecks that have driven inflation up are resolving “, did he declare.

In Asia, factory activity increased in December as companies supported rising global cases of the novel variant of the coronavirus Omicron, though persistent supply constraints and rising input costs cast a shadow over expectations. prospects for some economies. Read more

The Dow Jones Industrial Average (.DJI) rose 0.68%, the S&P 500 (.SPX) 0.64% and the Nasdaq Composite (.IXIC) rose 1.2%.

Apple Inc (AAPL.O) on Monday became the first company to reach a market value of $ 3 trillion while Tesla Inc (TSLA.O) rose more than 13.5% after announcing stronger quarterly shipments than expected from its electric cars. Read more

The S&P Index jumped nearly 28% last year, propelling the MSCI 50-Country Global Equity Index (.MIWD00000PUS) to its third consecutive year of double-digit gains. Read more

US 10-year benchmark yields hit a six-week high for a return of 1.6384% as investors expect a series of interest rate hikes this year to fight rising inflation . Read more

Commodities markets also quickly regained momentum after their resurgence of nearly two years to close 2021.

Brent oil rose 0.47% to nearly $ 79.35 a barrel, building on Monday’s gains, which were supported by tight supply and hopes for demand to pick up again in 2022 , despite a further expected increase in OPEC + production. US crude rose 0.37% to $ 76.36 a barrel. Read more

Gold prices rebounded from Monday’s worst selling in six weeks as a rally in equity risk put pressure on bullion. Spot gold gained 0.18% to $ 1,804.0 an ounce at 0519GMT. Read more

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Reporting by Kane Wu; Editing by Sam Holmes and Shri Navaratnam

Our Standards: Thomson Reuters Trust Principles.