SYDNEY : Asian share markets got off to a listless start on Thursday as the spread of Omicron clouded what is the last trading day of the year for many exchanges around the globe, while oil was close to finishing 2021 with gains of more than 50per cent.
Still, 2021 has been tough for much of the region and MSCI's broadest index of Asia-Pacific shares outside Japan was flat on the day and down 6per cent on the year. Taiwan was an outperformer with a rise of 24per cent thanks to red-hot demand for computer chips amid limited supply. The Nasdaq is ahead by 22per cent on the year, though much of that is due to stratospheric increases in the value of just seven tech groups - Apple alone makes up 11per cent of the index.
Longer-term bonds have suffered relatively less and the yield curve has flattened markedly, suggesting investors are wagering a more aggressive Fed now will mean slower inflation and growth in the future and a lower peak for rates. Much of the action came in the yen, which has run into broad year-end selling over the past week or so. The euro reached its highest since mid-November at 130.53 yen, as did the dollar at 115.04 yen.