Most stock markets rose in the Asia-Pacific region on Tuesday, as investors cheered an announcement from Hong Kong’s leaders that the city was putting an end date on Covid-19 restrictions for incoming travellers.
In Japan, the Nikkei 225 was up 0.4% at 27,954.85, as the yen strengthened 0.07% on the dollar to last trade at JPY 137.57.
Robotics specialist Fanuc was down 1.26%, while Uniqlo owner Fast Retailing rose 1.53% and tech investing giant SoftBank Group managed gains of 0.13%.
The broader Topix index was ahead 0.43% by the end of trading in Tokyo, settling at 1,965.68.
On the mainland, the Shanghai Composite slipped 0.09% to 3,176.33, and the technology-centric Shenzhen Component was 0.66% weaker at 11,323.70.
South Korea’s Kospi was off 0.03% at 2,372.40, while the Hang Seng Index in Hong Kong added 0.68% to 19,596.20.
Sentiment was boosted in the special administrative region after the city’s chief executive John Lee lifted a number of restrictions on residents and visitors.
Lee said restrictions on travellers visiting bars and restaurants would end on Wednesday, while residents would no longer be mandated to use the city’s official tracing app.
The ‘amber’ level placed on international arrivals was also being lifted, as Lee said the risk of imported cases was now lower than the local spread of infection.
Long-haul airlines finished the day higher as a result, with Air China up 3.17% and Cathay Pacific Airways ascending 3.18%.
Gambling operators were also in the green in the special administrative region as Macau geared up for the start of home isolation.
Sands China was up 4.32%, SJM Holdings added 1.11%, and Wynn Macau rose 2.41%.
Authorities in the resort territory of China announced on Sunday that, starting Wednesday, patients testing positive for Covid-19 would be able to self-isolate for five days.
The blue-chip technology stocks were on the front foot in Seoul, meanwhile, with Samsung Electronics up 0.34% and SK Hynix rising 1.48%.
“Asian markets put in a mixed performance with the main driver continuing to be speculation surrounding the Chinese economy,” said Interactive Investor head of markets Richard Hunter.
“Some concerns over a potential new surge in Covid-19 cases following some relaxation of the zero tolerance policy were set against the more economically helpful easing of restrictions for foreign tourists.
“Either way, the economy has much ground to recover following the difficulties of this year and although the outlook could be improving, there will inevitably be a time lag before the economy can get back onto the growth track.”
Oil prices were higher as the region went to bed, with Brent crude futures last up 1.15% on ICE at $78.89 per barrel, and the NYMEX quote for West Texas Intermediate ahead 0.94% at $73.86.
In Australia, the S&P/ASX 200 gained 0.31% to 7,203.30, as business confidence in the sunburnt country fell into negative territory for the first time since last December, according to a survey.
National Australia Bank’s monthly business survey showed confidence falling four points to -4, with sentiment below zero in retail, finance, business and property, recreation and personal, and transport and utilities.
Business conditions, meanwhile, were two points weaker at 20 index points, with all three components – trading conditions, profitability and employment – losing two index points.
“Confidence is now negative, for the first time this year, despite the strength in conditions,” said NAB chief economist Alan Oster.
“The gap between current business conditions and business confidence is now at a record level in the history of the survey – with the exception of March 2020 – pointing to heightened concerns about the resilience of the economy in the period ahead as inflation and higher rates begin to weigh on consumers.”
Across the Tasman Sea, New Zealand’s S&P/NZX 50 advanced 0.83% to 11,601.42, with cancer diagnostics specialist Pacific Edge leaping 7.6% in Wellington.
The move came after the company said new clinical evidence had been accepted for publication, which showed big improvements in its ‘Cxbladder’ genomic diagnostic tests.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.37% at AUD 1.4770, and the Kiwi advancing 0.17% to NZD 1.5642.
Reporting by Josh White for Sharecast.com.
