Asian shares rise, European stocks decline on hope for economic recovery
- 25 Jan 2021
Gulf Today Report
Asian shares advanced on Monday as investors remain hopeful for economic recovery based on upcoming company earnings.
Japan's benchmark Nikkei 225 gained 0.7 to finish at 28,822.29.
Australia's S&P/ASX200 added 0.4% to 6,824.70.
South Korea's Kospi gained 2.1% to 3,207.64. Hong Kong's Hang Seng jumped 1.8% to 29,983.32 while the Shanghai Composite was little changed, inching up less than 0.1% to 3,609.09.
Investors forecast a strong recovery once the pandemic comes under control. However, resurging cases in some parts of China and Japan are still keeping them worried.
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"Vaccine breakthroughs make it likely that life will become more functional again at some point in 2021, resulting in higher GDP growth and more robust corporate earnings,” said Stephen Innes, chief global markets strategist at Axi.
"But increasing global COVID19 infections, new variants of the virus, tightening social distancing restrictions and delays in vaccine rollouts in some places, all increase the near-term growth risks.”
European stock
European stock fell on Monday after a strong opening, as France prepares for a fresh lockdown.
Joshua Mahony, senior market analyst at IG trading group said: "a somewhat drab start to European trade has highlighted the detrimental impact of the lockdown measures seen throughout the region, with traders casting aside the optimism seen throughout Asia overnight."
The spread of the UK variant is likely to cause further travelling restrictions and France is gearing up for a third lockdown.
Investors are keeping an eye on the progress of US President Joe Biden’s stimulus package.