Asian stocks experienced a marginal rise during early trading on Friday to provide investors with some relief going into the new year after what was a difficult 2022. While Covid concerns in China still persist, equities largely strengthened following the release of U.S. data showing that the Federal Reserve’s strict monetary policy has been effective at cooling inflation.
MSCI’s broadest index of Asia-Pacific rose by 0.71%, thereby setting itself up to end December flat. Down 19% over the year to date, this is the index’s worst annual performance since 2008. Hong Kong’s Hang Seng Index gained 1.5% on Friday, while the Japanese Nikkei rose 0.22%. Australia’s S&P/ASX 200 Index increased by 0.34%.
Chinese stocks gained 0.63% despite investors fanning concerns over the speed at which China’s economy may recover following the removal of numerous COVID-induced health protocols that have limited economic activity in the nation.
According to analysts, several key issues over the course of 2022 still have to be resolved in 2023 in an effort to achieve an economic turnaround. This includes curbing the ongoing inflation issue while also finding a solution to the Russia-Ukraine conflict and expressing wariness over ongoing tensions between China and Taiwan.