(Bloomberg) — Most Asian stocks gained Thursday after U.S. shares rallied on bets that the economic recovery will weather temporary disruption from the flareup in omicron coronavirus cases.
Equities rose modestly in Japan and China, but technology stocks in Hong Kong struggled amid a slide in JD.com Inc. Tencent Holdings Ltd. plans to distribute more than $16 billion of shares in the online retailer to investors as a one-time dividend. Trading volumes thinned in some markets ahead of Christmas.
U.S. futures were steady after the S&P 500 closed in on its record high. Brighter consumer confidence and home sales aided sentiment, as did studies signaling omicron may be less likely to land patients in hospital than the delta variant.
At the same time, officials remain cautious since omicron spreads quickly. In China, the central city of Xi’an is tightening rules to curb a Covid outbreak.
The dollar held most of a drop from U.S. hours and Treasury yields were steady. Oil extended a rally to about $73 a barrel. Bitcoin slipped toward $48,000.
A gauge of global stocks is up more than 2% so far this month, leaving the index 15% higher for the year and on course to surpass 2020’s gain. Markets, though, have been volatile of late as traders evaluated virus risks and moves toward tighter monetary policy to check high inflation.
“Markets hate uncertainty and not knowing, and when omicron hit the markets, we didn’t know,” Carol Schleif, BMO Family Office deputy chief investment officer, said on Bloomberg Television. “But it seems like it’s edging toward something more positive.”
Further on the virus front, Pfizer Inc.’s Covid-19 pill gained clearance for emergency use in the U.S. In Australia, the nation’s most-populous state again saw a record-high daily Covid-19 tally as omicron becomes the dominant strain. So far, its health system appears to be coping.
What to watch this week:
- Bank of Japan Governor Haruhiko Kuroda speaks Thursday
- U.S. initial jobless claims, personal income, durable goods, University of Michigan consumer sentiment, new home sales on Thursday
- Friday: U.S. markets are closed. European markets close earlier
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- S&P 500 futures were little changed as of 12:46 p.m. in Tokyo. The S&P 500 rose 1%
- Nasdaq 100 futures were flat. The Nasdaq 100 rose 1.2%
- Japan’s Topix index rose 0.4%
- Australia’s S&P/ASX 200 Index added 0.3%
- South Korea’s Kospi index climbed 0.3%
- Hong Kong’s Hang Seng Index gained 0.1%
- China’s Shanghai Composite Index added 0.1%
Currencies
- The Japanese yen was at 114.16 per dollar
- The offshore yuan was at 6.3763 per dollar
- The Bloomberg Dollar Spot Index was steady
- The euro was at $1.1339
Bonds
- The yield on 10-year Treasuries was at 1.45%
- Australia’s 10-year yield rose about one basis points to 1.60%
Commodities
- West Texas Intermediate crude rose 0.4% to $73.03 a barrel
- Gold was at $1,805.14 an ounce
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