Asian share markets were trying to pick up the pieces on Monday following last week's thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy.
A raft of "flash" manufacturing surveys for August out on Monday will offer an early indication of how global growth is faring in the face of the Delta variant, with analysts expecting some slippage and especially in Asia.
Concerns over China's economy have only intensified in recent weeks, while Beijing's regulatory crackdown on the tech sector delivered a double blow to markets.
More than $560 billion was wiped from Hong Kong and mainland China exchanges last week as funds fretted on which sectors regulators might target next.
· Major Asia markets rise nearly 2%; Hong Kong’s Hang Seng looks set to bounce from bear territory
Stocks in Asia-Pacific rose in Monday trade as Hong Kong’s Hang Seng index bounced back after falling into a bear market last week.
The Hang Seng index jumped 1.8% to 25,299.71. The Hong Kong China Enterprises Index gained 1.7% to 8,890.08, after shares of Chinese tech giant Tencent rose nearly 3% while Hong Kong Exchanges and Clearing surged almost 6%.
Heavy losses last week left the Hang Seng index more than 20% below its mid-February high as regulatory uncertainty clouded the outlook for Chinese technology companies.
· Shanghai shares rise as China reports no local COVID-19 cases
China shares bounced back on Monday after last week’s sharp drop, as authorities reported no new local COVID-19 cases for the first time since July, while technology and healthcare stocks helped Hong Kong equities rise after a two-day fall.
The CSI300 index rose 0.9% to 4,810.14 by the end of the morning session, after falling more than 3.5% last week, while the Shanghai Composite Index gained 1% to 3,461.73.
· Nikkei rebounds from 8-month lows as bargain-hunters prop auto shares
Japan’s Nikkei share average jumped on Monday, after plumbing an eight-month low in the previous session, as auto-related stocks rebounded from losses following Toyota Motor’s announcement of slashing global production by 40% next month.
The Nikkei rose 1.78% to 27,494.24 on bargain-hunting after it hit its lowest since December on Friday.
The market shrugged off a defeat of Prime Minister Yoshihide Suga’s close ally in a mayoral election in Yokohama, Suga’s own constituency.
· European markets climb, looking to bounce back from worst week since February
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European markets were higher on Monday, looking to rebound after recording their worst week since February.
The pan-European Stoxx 600 added 0.7% in early trade, with autos climbing 1.5% to lead gains as all sectors and major bourses entered positive territory.
· FTSE 100 gains as commodity-linked stocks jump
London’s FTSE 100 gained on Monday after recording its worst week since February, as heavyweight energy and mining stocks jumped on higher commodity prices, with investors awaiting key PMI numbers to judge the pace of economic growth.
Reference: CNBC, Reuters
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