Asian Stock Market: Beijing soars on stimulus announcement, oil eyes $80.00
- Asian indices have displayed mixed responses as Chinese stocks have roared while Nikkei225 remained weak.
- Fresh economic stimulus considered by Beijing has infused an adrenaline rush into domestic equities.
- Oil prices have recovered dramatically in expectations of further supply cuts by OPEC.
Markets in the Asian domain have recovered dramatically after Chinese authorities considered economic stimulus to offset Covid-inspired bleak economic projections. Chinese equities have soared vigorously as public unrest has been restricted by marshals. On Monday, Beijing stocks faced an intense sell-off as the general public came on the roads for anti-Covid lockdown protests. This has resulted in a recovery in investors’ risk appetite.
At the press time, Japan’s Nikkei225 surrendered 0.45%, China50 soared 3.73%, Hang Seng climbs 4.32%, and Nifty50 gained 0.43%.
The announcement of fresh stimulus by the Chinese authorities has managed to offset the dented market sentiment for the time being but downside risks are still solid as the general public is filled with frustration and anger led by the rollback of Covid-19 lockdown curbs. Going forward, investors will shift their focus on Caixin Manufacturing PMI data, however, the fears of a resurgence in public unrest will stay for a while.
Meanwhile, Japanese equities have continued their downside bias despite a weakening risk-off mood. It seems that mixed Retail Sales data has impacted sentiment. The annual economic data landed at 4.3%, lower than projections of 5.0%. While monthly Retail Sales are grown by 0.2% against a de-growth of 0.3% as expected.
On the oil front, oil prices have recovered dramatically on potential supply cuts by OPEC in its meeting scheduled for December 4. The market participants are expecting that the recent weakness in oil prices could force the OPEC cartel to announce more supply cuts. Also, economic stimulus considered by Chinese authorities to curtain the impact of nationwide Covid-19 has brought optimism to oil prices.