BEIJING — Asian stock markets followed Wall Street higher Wednesday after President Joe Biden reassured investors by calling for vaccines and testing but no travel restrictions in response to the omicron coronaviruses variant.
The NikkeiNikkei 225 NIK, in Tokyo, declined less than 0.2% and the Hang Seng HSI, in Hong Kong, rose 0.3%. The Shanghai Composite Index, or SHCOMP, was flat.
The Kospi 180721, in Seoul added 0.2%, while Sydney s S&P ASX 200 XJO gained 0.2%. Benchmark indexes were advanced in Singapore STI, Taiwan Y 9999 and Indonesia JAKIDX.
Biden said the government will provide 500 million free rapid-test kits and increase vaccine efforts, but gave no indication of travel bans or other restrictions that could disrupt the economy. Other governments in Asia and Europe have tightened travel controls or pushed back plans to relax curbs already in place.
In a report, Yeap Jun Rong of IG said that Biden provided some much-needed reassurances for markets.
After markets bid up prices of airline, cruise line, oil and other travel related stocks, Traders were rattled by the official statements that omicron was spreading faster than expected, but were puzzled by the fact that tighter controls could be avoided.
The Fed indicated last week it would accelerate plans to reduce economic stimulators that have been boosting stock prices, which has led to expectations for tighter U.S. monetary policy. The Fed changed course after inflation rose to a four-decade high of 6.8% in November.
The impact of global supply chain disruptions that is fuelling fears of higher inflation is something traders are worried about.
The S&P 500 SPX rose 1.8% to 4,649. The benchmark index is within 1.4% of its December 10 all-time high.
The Dow Jones Industrial Average DJIA, increased by 1.6% to 35,492. The Nasdaq Composite COMP was up 2.4% to 15,341. In electronic trading on the New York Mercantile Exchange, benchmark U.S. crude CLG 22, climbed 59 cents to $71.71 per barrel. The contract went up $2.89 on Tuesday to $71.12. Brent crude BRNG 22, the price basis for international oils, increased by 61 cents to $74.59 per barrel in London. It gained $2.46 the previous session to $73.98.
The dollar's currency, USDJPY, fell to 114.10 yen from Tuesday's 114.12 yen.