July 7, 2022


Investors have become cautiously optimistic on the new Omicron variant might not to cause a widespread global economic disruption to worsen the coronavirus pandemic, leading Asian share market to trade in positive territory on Tuesday.
According to reports, the better performance across Asian equities markets came after a virus-led selldown late last week. Global investors were then concerned the variant could lead to further lockdowns that could impede the economic recovery.
The market also opened higher over a brighter lead from Wall Street on Monday, reacting to news from U.S President Joe Biden that new lockdowns as a result of the variant were off the table for now.

Market summary –
• On Tuesday, the MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.52% higher.
• In Australia, the S&P/ASX200 traded up 1.15%.
• Japan’s Nikkei index was trading higher by 1.2% early in the session.
• Hong Kong’s Hang Seng Index traded down 0.25%.
• While China’s blue chip CSI 300 index traded up 0.13%.
• China’s National Bureau of Statistics (NBS) showed the official non-manufacturing Purchasing Managers’ Index (PMI) to fell to 52.3 in November from 52.4 in October.
• NBS data showed that activity in China’s sector grew at a slightly slower pace in November.
• The gains on Tuesday came after the Dow Jones Industrial Average on Monday rose 236.6 points, or 0.68%, to 35,135.94.
• The S&P 500 added 60.65 points, or 1.32%, to 4,655.27.
• The Nasdaq Composite gained 291.18 points, or 1.88%, to 15,782.83.
• On Monday, in Asian trading, the yield on benchmark 10-year Treasury notes was at 1.5192% compared with its U.S. close of 1.529%.
• The two-year yield touched 0.502% compared with a U.S. close of 0.51%.
• Due to other markets firming, gold eased and fell 0.7% to $1,783.1 per ounce in the U.S. session. However, it rose slightly higher early in Asia to be neutral.
• U.S. crude rose 1.43% to $70.95 a barrel.
• The Brent crude rose to $74.4 per barrel.

According to market advisers, despite the positive open on Tuesday, some investors are still cautious about the impact Omicron variant could have in disrupting trade, economic activity, and travel.