Asian Markets Advance On Improving Covid-19 Conditions In Shanghai

Arjun Pandit
17 May, 2022
Mumbai

Asian markets advanced after China authorities suggested Covid-19 restrictions may be eased as early as June. 

The Nikkei 225 index in Tokyo increased 0.4% to 26,695.75, the Hang Seng Index in Hong Kong advanced 3.3% to 20,602.52, and the ASX 200 index in Sydney added 0.3% to 7,112.50. 

The Sensex index gained 2.54% or 1,344.63 to 54,318 and the Nifty index advanced 2.6% or 417.00 to 16,259.50. 

Shanghai hit the zero Covid-19 transmission for three days in a row raising the prospect of gradual lockdown easing as early as June, according to local reports quoting local authorities. 

The Nikkei index advanced for the third day in a row but gains were muted on the lingering worries of Fed rate uncertainties and elevated worldwide food and energy prices.

Inpex gained 3.5% and Japan Petroleum advanced 3.6%. 

Asahi Holdings declined 11% and Dentsu fell 6% on weaker than expected financial results.  

Tech stocks in Hong Kong led the surge. Alibaba Group soared 7.03% to HK$90.55, Tencent Holdings jumped 5% to HK$368.40, and JD.com added 7.04% to HK$214.80. 

India's wholesale price index in April surged 15.08% in April after rising at 14.55% in March, the data released by the Ministry of Commerce and Industry showed. 

The February inflation increase was revised lower to 13,43% from the previous estimate of 13.11%. 

Wholesale prices in April 2021 rose 10.74%.  

Life Insurance Company of India listed its share at 867.20 rupees on the Bombay Stock Exchange, a discount of 8.6% from its issue price of 949 rupees. 

LIC closed at 875.45 in trading on the BSE and the largest insurance company's public offering raised $2.75 billion. 

 Bargain hunting lifted manufacturing stocks in Korea and the Kospi index advanced 0.9% to 2,620.44. 

Samsung Electronics, SK Hynix, and LG Energy Solution gained more than 2%. 

The Australian market advance was tepid after the May RBA minutes of meeting showed that the rate hikes are likely at the next meeting in June. 

James Hardie declined more than 3% after the fiber cement maker reported weaker-than-expected annual results.