By YURI KAGEYAMA Business Writer AP
TOKYO (AP) – Asian stocks rose on Thursday, following a rally on Wall Street after signs of progress in resolving the congressional deadlock over the debt ceiling.
Japan’s benchmark Nikkei 225 gained 1.6% in morning trading to 27,972.58. The Australian S & P / ASX 200 added 0.8% to 7,262.30. South Korea’s Kospi jumped 1.3% to 2,944.57. Hong Kong’s Hang Seng jumped 2.2% to 24,491.36. The trade was closed in Shanghai for a Chinese national holiday.
Stephen Schwartz, senior director of Fitch, said he believes the regional economy will start to recover with growing vaccination efforts in Asia, which means restrictions to curb the spread of the coronavirus will be lifted.
But South and Southeast Asia, where vaccination deployment has been delayed, remains vulnerable to the “pandemic setbacks” of COVID-19. The recent problems in China’s real estate sector are another risk, he added.
“The slowdown in growth in China, along with the expected reduction from the US Fed, could have broader negative repercussions, especially for emerging and frontier markets in the region,” he said.
Japan’s economic outlook also remains bleak as new Prime Minister Fumio Kishida delivers his first political speech later this week. Although he has promised to raise revenues, he did not give details and is not widely seen as a supporter of the regulatory and structural changes that analysts have long said Japan badly needed. Some skeptics fear that any new spending will only push the country into further debt.