Asian Stocks’ journey is unpredictable, every day a massive fluctuation occurs. On that note, Asian stocks spiked up at a huge range and recovered from recent losses on Thursday. With all affirmations, this change of Chinese stimulus boosted regional sentiments. The demand of Hang Seng Index hiked again and is leading gains after Michael Burry’s Scion Asset Management was seen buying heavily into local players.
The Hang Seng index surged over 2% and was the best performer for the day. The index was largely supported by stellar gains in internet giants JD.com (HK:9618) and Alibaba Group Holding Ltd (HK:9988), which rallied over 7% and 3%, respectively.
Burry, who had famously shorted the 2008 subprime mortgage crisis, opened positions totaling over $8 million in Alibaba (NYSE:BABA) and JD (NASDAQ:JD) in the fourth quarter of 2022, Scion Asset Management’s latest 13F filing showed.
The numbers are quite impressive and the positions reflect optimism over an economic reopening in China, easing the government’s scrutiny against these biggest technology firms. Since November, China began withdrawing anti-COVID measures, as a result, the Hang Seng Index rallied over 45%.
Broader Asian markets were also buoyed by a recovery in technology stocks. South Korea’s KOSPI and the Taiwan Weighted index rose 1.8% and 0.9%, respectively, while China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes added 1% and 0.8%, respectively.
State media reports showed that the People’s Bank of China has said a few words on the economic shift, stating that it will take more measures to boost economic growth this year, and lending will also shore up as the economy recovers from three years of COVID related disruptions.
The positive turn in the stock market has impacted the property sector where prices rose slightly in January from the prior month. On an Average, the year-on-year basis , Chinese House Prices slid 1.5%.
Their recovery has broadened the Asian markets, it even gave regional markets a power of performing well in U.S retail sales, while inflation data is resulting in more interest rate hikes by the Federal Reserve.
Asian stocks were nursing steep losses this week amid growing fears of a more hawkish Fed, especially after the inflation reading.
Australia’s ASX 200 index recovered sharply from a steep fall on Wednesday, as weaker-than-expected employment data ramped up hopes that the Reserve Bank will lack sufficient economic headroom to keep raising interest rates.
National Australia Bank Ltd (ASX:NAB), one of the country’s largest lenders, rose 1% after it logged a 19% jump in its quarterly profit. But the stock was still nursing a 3.4% loss this week, amid growing fears of a credit slowdown in Australia.
- Published By Team Hongkong Journalist