Asian markets are set for a mixed open today, with Hong Kong markets expected to fall to their lowest since Dec 8, 2022. This comes after Wall Street saw a tech rally yesterday.
The tech sector on Wall Street surged in the past session as investors bet that President Joe Biden’s proposed $1.9 trillion stimulus package will help boost economic growth and corporate profits this year. The Nasdaq Composite rose 1% while the Dow Jones Industrial Average gained 0.7%.
Today’s market performance in Asia is likely to be affected by these developments across the Pacific Ocean, but also by local factors, such as new coronavirus cases and vaccine rollouts in different countries across the Asia-Pacific region. In Japan, stocks could get some support from better-than-expected GDP data released earlier today, which showed that the economy grew at an annual rate of 5% last quarter despite pandemic lockdowns and restrictions imposed by authorities over much of 2020.
Overall, Asian stock markets look set for a mixed opening day due to both global cues from US equities as well as domestic news flow from around the region. Investors should remain cautious when trading given the current volatility levels seen throughout financial assets worldwide.