Arab News Headlines

Asian shares mixed after broad rally on Wall Street

Stocks were mixed in Asia on Friday after a broad rally on Wall Street as investors kept an eye on the spread of the new coronavirus variant and measures governments are taking to restrain it.

Hong Kong slipped more than 1% while Tokyo edged lower. Shanghai and Seoul were higher while Sydney was nearly unchanged, reports AP.

The recent rebound may prove to be short-lived, Craig Erlam of Oanda said in a commentary.

“Early signs aren’t promising given the rate of case increases in South Africa and the fact that omicron is already popping up in numerous other countries,” Erlam said.

Investors may be “hoping for positive news on the vaccine effectiveness against the new strain and taking advantage of these levels before it’s too late. If they don’t get the news they’re hoping for, we could see another sharp move lower.”

The S&P 500 rose 1.4% on Thursday, its biggest gain since mid-October, to 4,577.10. The Dow gained 1.8% to 34,639.79. The Nasdaq added 0.8% to 15,381.32, held back by a modest drop in Apple, which fell 0.6% after the iPhone maker reportedly warned suppliers that it is seeing weak demand ahead of the holiday season.

The Russell 2000 jumped 2.7% to 2,206.33. Travel-related companies, which got hammered earlier this week as worries about the new coronavirus variant swept markets, rebounded Thursday.

American Airlines climbed 7%, while Delta Air Lines rose 9.3%. Cruise line operators Carnival and Norwegian Cruise Line jumped 9.2% and 7.7%, respectively.

Boeing rose 7.5% after China’s aviation regulation cleared the airplane maker’s 737 Max to return to flying with technical upgrades.

The market rebound comes as investors try to gauge the amount of damage the omicron variant of COVID-19 might inflict on the economy, and measures the U.S. and other governments are taking to restrain it. Trading has been choppy all week and, despite the latest gains, every major index is on track for a weekly loss.

Countries have been imposing barriers to travel and stricter restrictions on businesses and people. Concerns about global restrictions potentially crimping economic growth joined worries over rising inflation, which has prompted the Federal Reserve to consider withdrawing stimulus measures sooner than expected.

The yield on the 10-year Treasury slipped to 1.42% from 1.44% late Thursday.

U.S. crude oil prices rose after OPEC and allied oil-producing countries decided Thursday to stick to their plans to boost output via steady, modest monthly increases in oil releases, even as the omicron variant adds more uncertainty over the global economic recovery from the pandemic. Energy companies gained ground. Chevron rose 2.7%.

Early Friday, U.S. benchmark crude oil had gained 98 cents to $67.48 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the standard for pricing international oils, gained 89 cents to $70.56 per barrel.

The U.S. dollar rose to 113.14 Japanese yen from 113.06 yen late Thursday. The euro slipped to $1.1297 from $1.1300.

Source: Bahrain News Agency