Asian shares were mostly higher Tuesday after U.S. stocks slowed down from sharp losses to log strong gains.
In Tokyo, the Nikkei 225 NIK went up 0.7%, while the Kospi 180721, in Seoul, gained 0.6%. Hong Kong's Hang Seng HSI, gained 1.9%, and the Shanghai Composite index, SHCOMP, climbed 0.9%. After being closed for a holiday Monday, Australia s S&P ASX 200 XJO sank 1.8. In Taiwan Y 9999, but declined in Singapore STI, and Indonesia JAKIDX, South Korea reported that its economy grew at a 3.1% annual pace in the first quarter of the year, up 0.7% from the previous quarter.
The case numbers of COVID have abated after a wave of the omicron variant, and the government has recently lifted most of the COVID restrictions.
This should drive a bounce back in the downtrodden parts of the service sector. Alex Holmes of Capital Economics said that a further drop in precautionary savings should give an extra boost to consumption. With private consumption still well below pre-pandemic levels, there is plenty of room for a rebound, he said.
The week started on a downbeat note, particularly in China, over fears that stricter measures there might crimp the world's second-largest economy, potentially hurting global economic growth.
More than 3 million people have been tested in China's capital, Beijing, and restricted residents in one part of the city to their compounds, sparking fears of a wider lock-down similar to Shanghai. The International Monetary Fund has already lowered its growth forecast for China's economy after it was locked down for more than two weeks.
The benchmark oil CLM 22 gained 60 cents to $99.14 per barrel in electronic trading on the New York Mercantile Exchange. It lost $3.53 to $98.54 on Monday.
Brent crude BRNM 22, the standard for pricing international oil, gained 77 cents to $102.93 per barrel.
The dollarUSDJPY was down to 127.75 Japanese yen from 128.14 yen on Monday.
The S&P 500 SPX was up 0.6% to 4,296 on Monday. After erasing an early 1.7% loss, 12 came to an end. The rally was led by the stocks of internet-related companies, including Twitter TWTR, which jumped 5.7% after agreeing to let Tesla TSLA, CEO and tweeter extraordinaire Elon Musk buy it.
The Dow Jones Industrial Average DJIA rose by 0.7% to 34,049. 46, while the Nasdaq Composite COMP rallied 1.3% to 13,004.