Asian stocks rally on hopes of Shanghai gradually reopening | Malay Mail

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HONG KONG, May 17 — Hong Kong led a rally across Asian markets today on hopes that China’s economic engine Shanghai will ease its weeks-long lockdown and gradually reopen businesses, though analysts caution against any long-term relief.  Much of the city of 25 million has been under...

HONG KONG, May 17 — Hong Kong led a rally across Asian markets today on hopes that China’s economic engine Shanghai will ease its weeks-long lockdown and gradually reopen businesses, though analysts caution against any long-term relief.

Though no details were given and residents were still in their homes on Tuesday, Asian markets have cheered over the announcement. “We should continue watching the headline ticker for daily Omicron cases. Most especially, in Shanghai, where if literally one case appears again, any relief rally in Chinese markets could disappear in a puff of smoke.”

“Markets remain in fight or flight mode while rolling the dice on recession odds,” Stephen Innes of SPI Asset Management said. Today, Hong Kong rose by more than 3 per cent, while the mainland’s two indices — the Shanghai Composite Index and Shenzhen Composite Index — closed higher. European markets followed the lead, with Frankfurt, Paris and London all trading up at opening. In commodities trade, wheat prices soared to a record after major producer India banned its export because of a heatwave hitting production.

 

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