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Investors digested the latest Chinese inflation statistics and the impact of the new omicron COVID-19 version on the economic recovery as Asia Pacific markets were generally up on Thursday morning. By 9:04 PM ET (2:04 AM GMT), the Shanghai Composite had gained 0.39 percent, while the Shenzhen Component had gained 0.21 percent.
The consumer price index (CPI) increased 2.3 percent year over year and 0.4 percent month over month in November, according to data provided earlier in the day. The producer price index increased by 12.9% year over year. Investors are also keeping an eye on China’s real estate market, with a group of Kaisa Group Holdings Ltd. (HK:1638) bonds nearing a non-disclosure deal with the developer.
The move might pave the way for conversations about the company’s future financing. The Hang Seng Index in Hong Kong increased by 1.03 percent. The Nikkei 225 index in Japan fell 0.19 percent. South Korea’s KOSPI rose 0.57 percent on Wednesday, as the country’s COVID-19 cases surpassed 7,000 for the first time.
The ASX 200 index in Australia rose 0.01 percent after Reserve Bank of Australia Governor Philip Lowe spoke earlier in the day. After a 10 year note auction, U.S. Treasury rates rose, with the benchmark 10-year moving above 1.50 percent.
Initial lab investigations suggested that a third dosage of the COVID-19 vaccine from Pfizer Inc (NYSE: PFE) and BioNTech SE (F:22UAy) might be required to neutralize omicron.
Before the end of 2021, Pfizer will have data on how successfully the vaccine prevents omicron infections, according to Chief Executive Officer Albert Bourla.
He went on to say that a third booster dose should “do the trick” in terms of restoring high levels of protection. Investors are now waiting for additional information about omicron’s risk to the economy, as well as the US CPI on Friday and the Federal Reserve’s policy decision next week.
But, before then, some are expecting much greater turbulence. “We are looking to potentially have a rise in volatility even if the market continues higher around those events next week.
Many of the catalysts that gave us this boom out of COVID-19 are slowing. And then you have the Fed potentially tapering into a decelerating economy,” Optimal Capital portfolio strategist Frances Stacy said
Story by : Norvisi Mawunyegah