Here's what stock-market investors are getting wrong about China and its zero-COVID policy, economists say

Investors took some cheer this week from China’s latest COVID policy after massive anti-lockdown protests erupted across the country, rattling global financial markets, but economists think that markets have placed a “too high probability” on restrictions being relaxed soon.

U.S. stocks finished nearly flat on Tuesday after the Dow Jones Industrial Average DJIA, +1.49% dropped nearly 500 points in the previous session. Hong Kong’s Hang Seng Index HSI, +2.16% jumped 2.2% on Wednesday, booking a monthly gain of over 25%. It is the largest one month percentage gain since 1998, according to Dow Jones Market Data.

“I think the markets have taken a half glass full approach to the situation. There’s definitely investors who are looking at the bright side of this and hoping for an end to zero-COVID in the near future,” said Jonas Goltermann, senior markets economist at Capital Economics.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

MarketWatch Live: Stocks edge lower as investors weigh China COVID policy, Fed outlookMarketWatch Live: U.S. stocks edge lower as fear over COVID in China attenuates
Source: MarketWatch - 🏆 3. / 97 Read more »

U.S. stocks open mixed as investors weigh U.S. housing data, China's COVID policyU.S. stocks opened mixed as investors weighed comments from Chinese officials that long-term COVID-19 restrictions would be avoided as well as home price...
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock Market Today: Dow Falls 300 Points, Oil Slides Amid Covid Protests in ChinaThe Dow fell more than 500 points as protests across China against Beijing’s zero-Covid policy sparked worries about global growth The world is connected. We owe it to ourselves to get less selfish and more mindful
Source: WSJ - 🏆 98. / 63 Read more »