Asian markets mostly rise as investors watch for signs of China relaxing COVID restrictions

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TOKYO – Asian shares rose on Monday as investors weighed in on uncertainties such as the US midterm election and China’s possible moves to ease coronavirus restrictions.

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China reported a reduction in its trade in October as global demand weakened and anti-virus controls weighed on domestic consumer spending. Exports from a year ago declined 0.3%, down from September’s growth of 5.7%, the customs agency reported on Monday. Imports fell 0.7%, compared to a 0.3% expansion in the previous month.

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Speculation about a possible relaxation in China’s zero-covid strategy has had a huge impact on the markets. Hong Kong’s Hang Seng Index HSI on Monday,
+2.69%
3.4% and the Shanghai Composite Index SHCMP,
+0.23%
climbed 0.5%.

But there is no official confirmation of any major changes.

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“Over the weekend, Beijing has dashed hopes of a China reopening in the horizon, by re-emphasizing zero-COVID policies. And it may take fresh precautions,” said Tan Boon Heung at Mizuho Bank in Singapore.

Japan’s benchmark Nikkei 225 NIK,
+1.21%
jumped 1.3% in morning trade. Australia’s S&P/ASX 200 XJO,
+0.60%
0.4% and South Korea’s Kospi 180721,
+0.99%
Received 1%. Shares also rose in Taiwan Y9999,
+1.51%,
Singapore STI
+0.36%
and Indonesia JAKIDX,
+0.81%,

In the US, Tuesday’s election will determine control of Congress and the dominant regime. History shows that the party in power could suffer significant losses in the mid-term, and decades of high inflation has become a pressing issue for Democrats.

Analysts say regional markets may adopt a wait-and-see approach ahead of the US mid-term polls.

Wall Street shares ended last week with a rally but only after several yo-yos. Market watchers had the data to digest the US jobs market, looking at what this could mean for interest rates and the odds of a recession.

s&p 500 spx,
+1.36%
It posted its first loss in the past three weeks, despite gaining 1.4% on Friday to reach 3,770.55. Dow DJIA,
+1.26%
rose 1.3% to 32,403.22, and Nasdaq comp,
+1.28%
climbed 1.3% to 10,475.25. Both also ended with losses for the week.

The unemployment rate rose higher in October, employers added fewer jobs than they did a month earlier, and workers’ wage benefits slowed a touch. The recession was still more modest than economists expected. And so the Fed is expected Keep hiking rates.

Fed Chair Jerome Powell cited the still-hot jobs market as one reason that the central bank may eventually have to raise rates higher than before. Such moves can lead to a slowdown.

The yield on the two-year Treasury fell to 4.68% from 4.72% late Thursday. 10-year yield, which helps dictate rates for mortgages and other loans, increased from 4.15% to 4.16%.

Benchmark US crude CLZ22 in energy trading,
-0.53%
fell $1.29 to $91.32 a barrel. Brent Crude BRNF23,
-0.40%,
The international level fell by $ 1.13 to $ 97.44 a barrel.

In currency trading, US Dollar USDJPY,
+0.01%
increased from 146.65 yen to 147.22 Japanese yen.

Credit: www.marketwatch.com /

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