Asian shares rose on Wednesday on the back of reports indicating Chinese manufacturing growth following a prolonged period of Covid Zero restrictions.
Hong Kong’s Hang Seng rose 750 points to 20,552.60, thereby advancing by 3.8% while the Shanghai Composite added 32 points to 3,312.35; a 1% growth. Japan’s Nikkei 225 edged 0.3% higher while Australia’s S&P/ASX 200 slipped by 0.1%.
In contrast, U.S. stocks incurred losses at Tuesday’s market close, with the S&P 500 falling by 0.3%, thereby resulting in a monthly loss of 2.6%. The Dow Jones declined by 0.7% while the Nasdaq fell by 0.1%.
China’s business recovery has been advancing since early December when the government repealed the most stringent of its Covid Zero restrictions. 2022 saw the country’s economic growth slow to 3%; its second-lowest level since the 1970s.
Now, investor focus turns to incoming economic data over the coming week. “The consumer and inflation are in focus over the next few days,” Brian Overby, senior market strategist at Ally, noted. “After last week’s drubbing among retail stocks, the worst since June last year, some upbeat earnings results from Target should buoy the group.