Tokyo, Hong Kong and Seoul advanced while Shanghai was down
less than 0.1%.
Wall Street rose, breaking a three-day decline and
recovering the previous day’s losses.
Biden announced the government will provide 500 million free
rapid-test kits and increase vaccination efforts but gave no indication of
plans for travel bans or other restrictions that might disrupt the economy.
Other governments in Asia and Europe have tightened travel controls or pushed
back plans to relax curbs already in place.
Biden “provided some much-needed reassurances for markets,”
Yeap Jun Rong of IG said in a report.
The Shanghai Composite Index declined to 3,622.34 while the
Nikkei 225 in Tokyo advanced less than 0.1% to 28,533.54. The Hang Seng in Hong
Kong rose 0.8% to 23,143.11.
The Kospi in Seoul added 0.2% to 2,980.69 while Sydney’s
S&P-ASX 200 shed 0.2% to 7,340.10.
New Zealand declined while Southeast Asian markets advanced.
Traders were rattled by official statements that omicron was
spreading faster than expected after markets had bid up prices of airline,
cruise line, oil and other travel-related stocks on expectations tighter
controls could be avoided.
That takes place against a backdrop of expectations for
tighter U.S. monetary policy after the Federal Reserve indicated last week it
will accelerate plans to wind down economic stimulus that has been boosting
stock prices. The Fed changed course after inflation rose to a four-decade high
of 6.8% in November.
Traders also are worried about the impact of global supply
chain disruptions that are fueling fears of higher inflation.
On Wall Street, the benchmark S&P 500 rose 1.8% to
4,649.23. The benchmark index is within 1.4% of its Dec. 10 all-time high.
The Dow Jones Industrial Average gained 1.6% to 35,492.70.
The Nasdaq composite gained 2.4% to 15,341.09.
Nearly five stocks rose for every one that fell on the New
York Stock Exchange.
Citrix Systems climbed 13.6% for the biggest gain in the
S&P 500. Micron Technology jumped 10.5% after the chipmaker gave investors
an encouraging profit forecast.
Retailers. restaurant chains and other companies that rely
on consumer spending also rose. Tesla climbed 4.3%, Amazon.com rose 2% and
Starbucks rose 2.1%.
In energy markets, benchmark U.S. crude climbed 59 cents to
$71.71 per barrel in electronic trading on the New York Mercantile Exchange.
The contract rose $2.89 on Tuesday to $71.12. Brent crude, the price basis for
international oils, advanced 61 cents to $74.59 per barrel in London. It gained
$2.46 the previous session to $73.98.
The dollar edged down to 114.10 yen from Tuesday’s 114.12 yen. The euro gained to $1.1284 from $1.1282.
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