Stocks advance, U.S. dollar retreats as China drops quarantine rule – Reuters.com
HONG KONG, Dec 27 (Reuters) – Stock markets gained while the U.S. dollar softened on Tuesday after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19.
China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, the National Health Commission said on Monday. It will also downgrade the seriousness of COVID-19 as it has become less virulent and will gradually evolve into a common respiratory infection. read more
By Tuesday morning in Hong Kong, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.5%. China’s bluechip gained 0.6% and Japan’s Nikkei stock index (.N225) rose 0.43%.
U.S. stock futures, the S&P 500 e-minis , inched up 0.61%, indicating the market is set to rise as traders return to their terminals on Tuesday after the Christmas holiday.
Markets in some regions including Hong Kong and Australia remain shut on Tuesday.
Chaoping Zhu, a global market strategist and JPMorgan Asset Management, said the latest policy move from China indicated economic activity in most major cities may return to normal very quickly, which is very positive for investors.
“Most Chinese cities could recover from the first wave of the latest COVID-19 outbreak by January… this would be faster than people have expected,” he said, adding there was concern of an outbreak lasting longer and weighing on the economy, but that developments have been in general better than expected.
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