Asian shares swung into positive territory in afternoon trade, propelled by China’s decision to ease some quarantine requirements for international arrivals; with Hong Kong stocks particularly supported.
MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.5%, having spent most of the day in the red. The index has fallen 3.8% so far this month.
Health authorities said on Tuesday that China will halve to seven days its COVID-19 quarantine period for visitors from overseas; with a further three days spent at home.
Following the news, Hong Kong’s Hang Seng index (.HSI) reversed its losses and jumped 0.85% in afternoon trade.
In China, the blue-chip CSI300 index (.CSI300) was 1% higher, also having clawed back earlier losses.
The sharp change in mood looked set to last into the global day with the pan-region Euro Stoxx 50 futures up 0.31%. German DAX futures 0.2% higher and FTSE futures climbing 0.47%. U.S. stock futures rose 0.46%.
Market sentiment was also boosted by an official’s remarks that Beijing would roll out tools to cope with economic challenges as COVID-19 outbreaks and risks from the Ukraine war pose a threat to employment and price stability.
Australian shares (.AXJO) were up 0.86%, while Japan’s Nikkei stock index (.N225) rose 0.66%.
The Dow Jones Industrial Average (.DJI) fell 0.2%, the S&P 500 (.SPX) lost 0.30% and the Nasdaq Composite (.IXIC) dropped 0.72%.
Oil continued to rise with investors still weighing worries about an economic slowdown against concerns over lost Russian supply amid sanctions related to the conflict in Ukraine.
U.S. crude ticked up 1.02% to $110.69 a barrel. Brent crude rose to $116.42 per barrel.
“A seam of tight supply news bolstered the (oil) market,” said analysts at Commonwealth Bank of Australia. “Political unrest might curtail supply from a couple of second-tier producers, Ecuador and Libya. And then there’s the G7’s proposed price cap on Russian oil.”
Also, the dollar edged lower versus major rivals as investors weighed expectations on inflation and interest rate hikes. The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, was down at 103.96.
Gold was slightly higher with the spot price trading at $1,825.79 per ounce.