Asian stock markets rose Monday after a new high hit by Wall Street despite lingering unease over a possible second wave of coronavirus infections.
Benchmarks have advanced in Shanghai, Tokyo, Hong Kong, and South Korea.
Global markets have recovered much of the losses this year, despite growing numbers of infections in the United States, Brazil, and some other countries.
On Wall Street, the S&P 500 index benchmark finished up 0.7 percent last week, while the majority of stocks in the index dropped.
Forecasters say the recovery could be too early for uncertain economic activity to sustain. Major corporations have lifted global market averages because of outperformance, while smaller stocks are still down.
Mizuho Bank stated the global economy “offers few reasons to be optimistic.”
If a “second wave” of infections hits, renewed curbs on business and travel “could hamper the trajectory of economic recovery,” the bank said.
Investors Were Inspired by Efforts of the Central Bank
In Asian stock markets, The Shanghai Composite Index rose 0.3% to 3,391.99 and the Nikkei 225 in Tokyo added 0.3% to 22,996.97. The Hang Seng in Hong Kong advanced 1.6% to 25,513.06.
The Kospi in Seoul was 0.9% higher at 2,326.11 and Australia’s S&P-ASX 200 gained 0.1% to 6,118.60. New Zealand and Singapore advanced while Indonesia declined.
Stocks have powered higher despite signs of economic growth in the United States and Europe might be weakening.
Investors were inspired by the efforts of the central bank. In addition, it aims to support development through credit infusions. Some seek to look past the end of the pandemic to pick companies that are going to emerge stronger. This has caused others to pile up in tech inventories.
The S&P 500 increased by 0.3 percent to 3,397.16 on Friday. It ended 0.7 percent of the week.
In addition, the Dow Jones Industrial Average rose to 27,930.33 by 0.7 percent. The index from Nasdaq added 0.4 percent to 11,311.80.
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