BANGKOK — Shares advanced Tuesday in Asia after China announced it would relax more of its pandemic restrictions despite widespread outbreaks of COVID-19 that are straining its medical systems and disrupting business.
China’s National Health Commission said Monday that passengers arriving from abroad will no longer have to observe a quarantine, starting Jan. 8. They will still need a negative virus test within 48 hours of their departure and to wear masks on their flights. The Shanghai Composite index SHCOMP jumped 0.8% to 3,089.39. Hong Kong’s markets were closed for a holiday, as were those in Australia.
The Dow Jones Industrial Average DJIA rose 0.5%, while the tech-heavy Nasdaq edged 0.2% higher. The Russell 2000 index RUT picked up 0.4%. The pace of price increases has eased, but the Fed has said it will keep raising interest rates to tame inflation. Its key overnight rate is at its highest level in 15 years, after beginning the year at a record low of near zero. The key lending rate, the federal funds rate, stands at a range of 4.25% to 4.5%, and Fed policymakers have forecast it will reach a range of 5% to 5.25% by the end of 2023 and not be cut before 2024.