The Covid 19 led developments continue to be a drag on Asian stock markets. Nikkei 225 closed at 26,094.50 levels, up by 0.83 points over the previous day’s closing. Hang Seng ended the day’s session at 19,781.41, up by 40.27 or 0.20%. Shanghai index was up by 0.44% at around 3,089.26, which is 15.56 higher than the previous day’s closing.
US equities ended higher as investors assessed the state of the US economy and what China’s reopening might mean for global growth and inflation. The S&P 500 gained 1.75%, while the technology-focused Nasdaq Composite Index gained 2.59%, and the Dow Jones Industrial Average edged up 1.05%.
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With just a trading day remaining in 2022, the coronavirus pandemic is once again turning out to be a decisive factor in most of the stock market exchanges around the world. In the early hours of trading on Thursday, equity market indices in South Korea, Australia, China, and Hong Kong are falling, with Hong Kong technology stocks among the most severely damaged sectors of the market.
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Investors who anticipated the world’s second-largest economy to regain momentum after the relaxation of strict Covid rules were alarmed by the skyrocketing Covid-19 cases in China. The news is that the US would demand flight passengers arriving from China to present a negative Covid-19 test before entering the country. The majority of passengers on two flights from China to Milan were confirmed to have the virus, according to health officials in Italy, who also announced that they will test arrivals from China.
The impact Covid-19 had on supply chains across the world is a known fact. After a terrible year for the financial markets, optimism has been dampened in the final trading week of 2022 by the possibility of additional pandemic damage to weak supply chains as central banks struggle to manage inflation.