VOT Research Desk
Early on Wednesday, Asian markets struggle to find a clear direction as investors await significant triggers slated for publication. Mixed signals from China are also likely to have presented difficulties for the region’s stock traders.
The MSCI index of Asia-Pacific shares ex-Japan climbs 2.6%, reflecting the sentiment, but Japan’s Nikkei 225 falls 0.5% by press time, dampening the excitement.
Tokyo’s pessimistic atmosphere may be caused by Japan’s dissatisfaction with October’s Industrial Production.
On the other side, Chinese stocks are rising after Beijing announced a number of measures to loosen the rigorous lockdown in the critical areas after the daily Covid infections started to decline from a record high.
However, the second-largest economy in the world maintained its Zero-Covid policy. Bloomberg reported on the reopening of a few civic structures in the larger Zhengzhou area, which is home to a significant iPhone facility.
The Guangdong province of China would permit the close contacts of Covid cases to quarantine at home, according to press reports from earlier on Tuesday.
However, disappointing China activity figures for November cast doubt on the optimism in the land of the dragon.
Looking forward, markets are anticipated to stay flat with a cautious mindset prior of Chairman of the Federal Reserve Jerome Powell’s first speech since the November meeting.
If the policymaker lives up to hawkish expectations, the market mood can deteriorate.
