Major stock indices in Asia posted an increase of 0.6-2.2%. The Chinese Shanghai Composite showed the lowest growth of only 0.6%, while Japan's Nikkei 225 advanced by as much as 2.19%. Other indices of the region posted gains within this range: China's Shenzhen Composite rose by 1.07%, Korea's KOSPI added 1.2%,
Australia's S&P/ASX 200 advanced by 1.45%, and Hong Kong's Hang Seng Index increased by 2.08%.
Investors' positive sentiment was mainly supported by a 1.8-3.3% rise in the US stock market. Over the past week, stocks have increased by 6% after declining for several months in a row.
In addition, the Chinese authorities expect a swift recovery after the recent COVID-19 outbreak. Lockdown measures have already been eased in some regions. Thus, in Shanghai, city officials have announced an action plan consisting of 50 policy measures to boost the economy. They include state subsidies and tax incentives for business owners who were most affected by the quarantine measures.
Among the components of the Hang Seng Index, the biggest gains were posted by Li Ning Co. (+10.2%), Haidilao International Holding Ltd. (+9.7%), Meituan (+7.8%), JD.com, and Anta Sports Products Ltd. (+5% and +4.5% respectively).
Experts predict that consumption rates in China may surge after restrictive measures are lifted. The value of stocks in the tourism sector has already increased: Jinling
Hotel went up by 10%, China Tourism added 3.8%, and Kweichow Moutai rose by 1.7%.
Meanwhile, the Bank of Japan maintains its dovish stance on monetary policy and does not plan to raise interest rates despite rising inflation. The authorities stick to this policy to support the economy after the coronavirus pandemic.
Among the components of the Nikkei 225 index, Sony was the biggest winner with a gain of 5%. Recruit Holdings was up by 6.7%, Fanuc rose by 4.5%, and CyberAgent Inc. gained 4.9%.
Shares of other large companies in the country performed slightly worse, with SoftBank Group and Mitsubishi UFJ rising by just 0.4% and 0.2% respectively. Fast Retailing grew by 3.3% and Toyota Motor - by 2.4%.
South Korea's largest companies, Samsung Electronics Co. and Hyundai Motor, recorded growth of 1.7% and 1.1% respectively.
After LG Group announced that it would buy back 4% of its own shares worth 500 billion won ($400 million) by 2024, its share price immediately surged by 9.6%.
Among the companies belonging to the S&P/ASX 200 index, Zip Co. was the leader as it added 11% at once.
Other large companies also posted gains: Woodside Petroleum advanced by 4.3%, BHP rose by 2.5%, and Rio Tinto went up by 0.8%.
After AGL Energy had abandoned the plan to split its business decisions, the value of its stocks decreased by 1.9%. Besides, the company announced that several executives will resign as soon as a replacement is found.
