Hope for Economic Recovery is Boosting Asian Stock Markets

The stock markets in the Asian region showed recovery on Wednesday, after the loss the day before. Especially companies benefiting from an improving economy were picked up by the hope of a strong recovery from the corona crisis.

 

Technology companies, which soared during the corona pandemic, fell out of favour due to the resurgence of concerns about the overvaluation of their stocks.

The leading Nikkei in Tokyo made up an earlier loss and ended 0.5 percent in the plus at 29,559.10 points. So-called cyclical companies, which are sensitive to economic developments, such as steelmaker Nippon Steel and car manufacturer Nissan, were among the strongest risers with profits of 6 and more than 3 percent.

The Japanese maker of chip equipment Tokyo Electron and chip tester Advantest fell more than 1 percent, following the price losses among American peers.

The main index in Shanghai posted an interim gain of 1.4 percent, despite a slowdown in the country’s services sector’s growth. According to market researchers Caixin and Markit, activity in the Chinese services sector fell to its lowest level in ten months in February. The Hang Seng index in Hong Kong gained 1.8 percent thanks to substantial price gains at the Chinese banks.

In Sydney, the All Ordinaries closed 0.8 percent higher. The Australian economy grew by 3.1 percent in the fourth quarter. That was stronger than expected.

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