Asian shares rise but momentum fizzles on virus worries
TOKYO (AP) — Asian shares gained Tuesday, boosted by a near-record rise on Wall Street, though the momentum began to fizzle out over worries about the economic fallout from surging coronavirus infections in the region.
Japan's benchmark Nikkei 225 rose 0.9% to finish at 27,732.10. South Korea's Kospi gained 1.6% to 3,139.86. Australia's S&P/ASX 200 rose 0.2% to 7,503.00. Hong Kong's Hang Seng added 1.8% to 25,559.67, while the Shanghai Composite was up 1.1% at 3,513.52.
Some parts of Asia have had slower vaccine rollouts than the U.S. and Europe and are at a greater risk for the more contagious delta variant.
“Outbreaks in Asia Pacific have led to new containment measures, disrupting production and trade in a region that accounts for 37% of global merchandise exports,” said Sara Johnson, executive director, global economics, IHS Markit. "Asia Pacific’s manufacturing hubs are the current hotspots for COVID-19."
She noted vaccination campaigns outside mainland China have been slow in Asia, hurting consumer spending, tourism, industrial production and exports. The IHS Markit manufacturing PMI surveys for July show deteriorating business conditions in Indonesia, Malaysia, Myanmar, Thailand and Vietnam. Cases of COVID-19 infections have been falling in India, Taiwan, and Indonesia, but rising in Japan, South Korea, Malaysia, the Philippines, and Vietnam.
"Risk-on sentiments largely followed through with the positive lead from U.S. indices overnight. Some catchup growth may be on watch, considering that Asian markets have been diverging in performance from their Western counterparts since June. Ongoing Covid-19 risks continue to be prevalent," said Yeap Jun Rong, market strategist at IG in Singapore.
On Wall Street on Monday, the S&P 500 rose 0.9%, lifted by...
