Asian investors take breather after latest stocks surge
Hong Kong: Asian markets were mixed Tuesday after their latest rally, with investors awaiting the corporate earnings season with some optimism after a run of upbeat economic data that has offset fears of a virus second wave.
While several countries are suffering a fresh surge in infections -- particularly the United States -- the ongoing easing of lockdown measures and reopening of economies has been the key driver of a months-long surge across equities.
After the latest advances, which saw Shanghai hit a two-year high and the Nasdaq on Wall Street end at another record, traders stepped back.
However, there are expectations of more gains, particularly as governments and central banks around the world are providing a multi-trillion-dollar backstop.
Shanghai led advancers, climbing more than one percent, having surged almost six percent Monday as retail investors piled back into the market. Observers also pointed to an editorial in the China Securities Times that said fostering a "bull market" after the virus crisis was crucial to kick-starting the world's number two economy.
The composite index is up around 13 percent over the past week, though there are worries about another bubble similar to the one that burst four years ago and sparked a global rout.
"China's army of retail investors seem to be perfectly able to look through the worrying Western media headlines of another global coronavirus record," said AxiCorp's Stephen Innes.
"Instead, they are listening to the enthusiastic chorus from the nation's influential state media, which are universally singing bullish from the same song page."
He cited reports saying there had been a recent surge in new brokerage account openings. - AFP