Stocks advance, US dollar retreats as China drops quarantine rule

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HONG KONG : Stock markets gained while the U.S. dollar softened on Tuesday after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19.China will stop requiring inbound travellers to go into quarantine starting from J

HONG KONG : Stock markets gained while the U.S. dollar softened on Tuesday after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19.

U.S. stock futures, the S&P 500 e-minis, inched up 0.61 per cent, indicating the market is set to rise as traders return to their terminals on Tuesday after the Christmas holiday.Chaoping Zhu, a global market strategist and JPMorgan Asset Management, said the latest policy move from China indicated economic activity in most major cities may return to normal very quickly, which is very positive for investors.

Inbound tourists had recovered 60 per cent to 70 per cent by November for many ASEAN countries, Zhu said, citing in-house research, but there is still a gap between now and 2019 before the pandemic.The dollar moved broadly lower on Tuesday while Australia's and New Zealand's currencies jumped as risk appetite grew after China scrapped its quarantine rule.

Brent crude was up 73 cents, or 0.9 per cent, at $84.65 a barrel by 0122 GMT, while U.S. West Texas Intermediate crude was at $80.41 a barrel, up 85 cents, or 1.1 per cent.

 

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