Asian Markets recover spurred by Omni corn worries

Asian equities on Tuesday rebounded from the global downturn in financial markets, boosted by concerns about the impact of Omicron variants, inflation and other forces on the global economy. Tokyo has risen by more than 2% and other benchmarks in Asia have also risen.

Much of the concern about the global outlook was caused by the Omicron variant of coronavirus. Cases are skyrocketing in Europe and the United States, and federal health officials announced last week that they accounted for 73% of new infections, nearly six-fold in just seven days. In Asia, cases of coronavirus are increasing in Australia and South Korea as the government strengthens precautions to prevent or contain the outbreak. However, bargain hunters often choose to buy when prices are falling, adding to the general volatility during the weak activities of the Christmas season.

Tokyo’s Nikkei 225 index rose 2.1% to 28,517.59, and Hong Kong’s Hang Seng index rose 1.2% to 23,024.78. In Seoul, Kospi rose 0.4% to 2,975.03 and the Shanghai Composite Index rose 0.9% to 3,626.48. In Sydney, the S & P / ASX 200 rose 0.9% to 7,355.00. The sharp drop on Monday, was “enough to put the Fastmoney FOMO gnome into action in Asia,” Oanda’s Jeffrey Hallley said in a comment. 4,444 shares fell worldwide on Monday. Oil producer stocks have taken the lead, fearing that the latest variants of  the coronavirus may reduce fuel consumption for factories, planes and drivers after US oil prices have fallen 3.7%. Oil prices rebounded on Tuesday and the New York Mercantile Exchange’s US electronic trading benchmark rose 85 cents to $ 69.46 a barrel. Brent crude, the international price standard, rose 64 cents to $ 72.16 a barrel.

Omicron may be the most terrifying force out there, but it’s not the only one. The planned $ 2 trillion US government spending program was hit by  a potential death  over the weekend when  influential senators said they couldn’t support it. Markets are also still absorbing the significant Fed move  to get rid of the aid they are giving to the economy faster due to the surge in inflation. Combined with

, the S & P 500 benchmark fell 1.1% to 4,568.02. The Dow Jones Industrial Average fell 1.2% to 34,932.16. The Nasdaq Composite was down 1.2% to 14,980.94. 4,444 small cap stocks were below other markets. The Russell 2000 Index fell 1.6% to 2,139.87.

Thailand is considering stricter precautions after recently relaxing strict quarantine rules to support the recovery of the tourism sector. The Dutch government launched a strict national blockade on Sunday, but British officials said on Monday that they could not guarantee that no new restrictions would be announced this week. The Natural History Museum, one of London’s major attractions, said it was closed for a week on Monday due to a “front desk staff shortage.”

In the United States, President Joe Biden is expected to announce new measures and at the same time give a strong warning about what winter will be for Americans who choose to remain unvaccinated. “Said a White House spokesman over the weekend.  Another horrifying consequence of the  Omicron variant is already complex if it could further drive inflation, leading to the closure of ports, factories and other important points in the long global supply chain that lead to customers. It can exacerbate the process. Such problems raised consumer prices in November by 6.8% year-on-year, resulting in the fastest inflation rate in nearly 40 years.

However, some economists claim that Omicron can have the opposite effect. If variants lead to blockades or induce consumers to stay home, economic activity can slow down, demand surges, supply chains can be overwhelmed, and consumer prices can fall. The worst-case scenario would slow the economy without relief from the already built-in inflation. In foreign exchange trading, the US dollar rose from 113.61 yen to 113.73 yen. The euro fell from $ 1.1283 to $ 1.1276.