Asian Stocks Up, but COVID-19 and China Regulatory Concerns Cap Gains

© Reuters. By Gina Lee Investing.com – Asia Pacific stocks were mostly up on Monday morning as investors bargain-hunted after the previous week's selloff. However, concerns about the spread of COVID-19's Delta strain and regulatory tightening in China continued, capping some of the gains. Japan’s jumped 1.38% by 9:41 PM ET (1:41 AM GMT). South Korea’s rose 1.05%, with the Bank of Korea handing down its on Thursday. In Australia, the edged up 0.12%. Hong Kong’s rose 1.27%. China’s inched up 0.01% and the slid 1.61%. China looks set to continue its regulatory tightening across sectors, with investors monitoring the impact on shares in Chinese and Hong Kong shares which lost more than $560 billion in the previous week alone. All eyes are also on the U.S. Federal Reserve’s Jackson Hole symposium that opens on Aug. 26, where further clues on the timeline for asset tapering and interest rate hikes are expected. Dallas Fed President did provide a potential clue ahead of the symposium, saying that he could adjust his opinion that asset tapering should begin soon if the COVID-19 Delta variant continues to spread and impacts the economic recovery. Meanwhile, U.S. Treasury Secretary Janet Yellen endorsed Jerome Powell for a second term as Fed Chairman. It is also a busy week data-wise in the U.S., with and data due later in the day alongside the and PMIs. The U.S. is out on Thursday, followed by the , an inflation measure closely watched by the Fed, on Friday alongside personal and data. Global shares are slowly starting to recover from the previous week’s carnage, but the COVID-19 concerns and worries about the Fed beginning asset tapering sooner than expected that contributed to reduced risk appetite remain. “Markets react to interest-rate hikes much more than tapering and we expect a pause between tapering and the first hike, suggesting liftoff in 2023 and not before,” Natixis Investment Managers head of global market strategy Esty Dwek said in a note, which added that COVID-19 is still with us and growth will soften into 2022. Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Asian Stocks Up, but COVID-19 and China Regulatory Concerns Cap Gains
Asian Stocks Up, but COVID-19 and China Regulatory Concerns Cap Gains © Reuters.

By Gina Lee

Investing.com – Asia Pacific stocks were mostly up on Monday morning as investors bargain-hunted after the previous week's selloff. However, concerns about the spread of COVID-19's Delta strain and regulatory tightening in China continued, capping some of the gains.

Japan’s jumped 1.38% by 9:41 PM ET (1:41 AM GMT). South Korea’s rose 1.05%, with the Bank of Korea handing down its on Thursday.

In Australia, the edged up 0.12%.

Hong Kong’s rose 1.27%. China’s inched up 0.01% and the slid 1.61%. China looks set to continue its regulatory tightening across sectors, with investors monitoring the impact on shares in Chinese and Hong Kong shares which lost more than $560 billion in the previous week alone.

All eyes are also on the U.S. Federal Reserve’s Jackson Hole symposium that opens on Aug. 26, where further clues on the timeline for asset tapering and interest rate hikes are expected. Dallas Fed President did provide a potential clue ahead of the symposium, saying that he could adjust his opinion that asset tapering should begin soon if the COVID-19 Delta variant continues to spread and impacts the economic recovery.

Meanwhile, U.S. Treasury Secretary Janet Yellen endorsed Jerome Powell for a second term as Fed Chairman.

It is also a busy week data-wise in the U.S., with and data due later in the day alongside the and PMIs. The U.S. is out on Thursday, followed by the , an inflation measure closely watched by the Fed, on Friday alongside personal and data.

Global shares are slowly starting to recover from the previous week’s carnage, but the COVID-19 concerns and worries about the Fed beginning asset tapering sooner than expected that contributed to reduced risk appetite remain.

“Markets react to interest-rate hikes much more than tapering and we expect a pause between tapering and the first hike, suggesting liftoff in 2023 and not before,” Natixis Investment Managers head of global market strategy Esty Dwek said in a note, which added that COVID-19 is still with us and growth will soften into 2022.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.