Asian markets mixed as global rally peters out

Asian markets were mixed Monday as traders struggled to maintain momentum after a global surge, though the loosening of China’s Covid rules and plans to help its property sector helped Hong Kong extend its rally, AFP reported.
Equities rocketed last week and the dollar sank after data showed US price rises eased in October, providing the Federal Reserve with room to take its foot off the pedal in tightening monetary policy.
The news led some commentators to suggest a feared recession in the world’s top economy could be shallower than first feared, or might be averted entirely.
The optimistic mood was given an extra injection late Friday by news that Beijing would relax some of its strict Covid-19 restrictions, a day after officials vowed to stick to their zero-tolerance strategy that has hammered growth.
Authorities have also reportedly unveiled a 16-point plan to support the beleaguered property sector, a major component of the country’s sprawling economy.
The industry has come under immense pressure since China imposed a number of restrictions in 2020 aimed at reeling in debt, with major developers teetering on the brink of collapse.
The news indicates the leadership is beginning to focus on supporting the economy, a crucial driver of global growth.
Hong Kong opened up more than three percent — having soared more than seven percent Friday — though the gains were tempered as the day wore on.
Still, property firms were the best performers with Country Garden leading the way with a massive 40 percent jump.
Singapore, Taipei and Manila also rose, but profit-taking weighed elsewhere. Tokyo, Shanghai, Sydney, Seoul, Mumbai, Jakarta and Wellington retreated.
While the mood has lightened after the US inflation read, there is still a sense of trepidation among traders who fear the Federal Reserve will continue to lift borrowing costs while analysts warn last week’s rally may have been overdone.
Still, the yen, pound and euro held most of their gains against the dollar, which came in reaction to the consumer price index reading.