Most of the Asian equity benchmarks traded higher in early deals on Thursday, caught up with the positive US stock markets overnight and on technical buying after two days of losses in a row. Even though, risk aversion amid surging covid cases world-wide, the possibility of coronavirus-related lockdowns in some markets and rising doubts about global economic health limited gains of the session. Oil shares are in lower note after slide of crude oil rates overnight, while gold miners in positive territory with the higher gold rates. Japan’s Nikkei rebounded sharply after two days of straight losses , with the Nikkei 225 gaining nearly 600 points to break above the 29,000 mark. However, worries about possible coronavirus-related lockdowns in major cities amid the continuing surge in coronavirus cases weighed on the sentiments. Japan reported nationwide daily infections of topped 5000 for the first time in three months. The country's government is mulling fresh coronavirus state of emergency in Tokyo as well as Osaka, Kyoto and Hyogo prefectures on Friday. Among the Asian markets, Japan, Singapore, Hong Kong, South Korea, and Malaysia are in positive note. Bucking the trend, Taiwan, Indonesia and China are trading lower.
Nikkei 225 up by 566.23 points or 1.99% to 29,074.78, Straits Times increased 25.23 points or 0.80% to 3,180.29, Hang Seng rose by 132.90 points or 0.46% to 28,754.82, KOSPI Index jumped by 9.98 points or 0.31% to 3,181.64, and FTSE Bursa Malaysia KLCI higher by 8.21 points 0.51% to 1,604.79.
On the flip side, Taiwan Weighted dipped 22.76 points or 0.13% to 17,179.35, Jakarta Composite curtailed by 9.46 points or 0.16% to 5,983.78 and Shanghai Composite down by 1.70 points or 0.05% to 3,471.23.